Resources to Bank On

Let’s take a breather and hit reset.

It’s been a crazy week.

If you have opened your phone or turned on a TV, all you have seen is Silicon Valley Bank (SVB) and the impact from its collapse.

To many, the SVB collapse is truly shocking. Rightfully so.

In times like this there are a few key things to keep in mind.

1. Every individual is impacted. It is worth taking a quick audit of your banking institution, where your mortgage is placed and what exposures you have to the grander banking industry.
2. Realize that this affects your neighbors, your business, your vendors and your customers.
3. You have resources.

In the recent days, there are countless articles about ways to protect your personal money.

But when it comes to a business, understanding the resources you have is more important than ever.

After SVB, we saw many companies not being able to make payroll. Their employees come first, so this will inevitably slow vendor payments.

This is like a wave deep in the ocean that grows the closer it gets to the shore... or gets to you.

When you combine Signature Bank’s failure and First Republic Bank’s recent downgrade, there could be increased volatility within the entire banking industry.

Moody’s recently stated in a report, “Banks with substantial unrealized securities losses and with non-retail and uninsured US depositors may still be more sensitive to depositor competition or ultimate flight, with adverse effects on funding, liquidity, earnings and capital.”

It is time to be proactive and understand the available resources you have. The unrealized losses are the ones I help talk through with clients daily.

The first step is to understand the financial health of your clients and vendors. Call them and ask if they are being affected by the current crisis.

Once those calls are done, now what?

Wouldn’t it be nice if there was a comprehensive solution to ensure you do not lose any money, can navigate any business-to-business relationship and secure your balance sheet?

Well, you're in luck because we have one such solution.

Let me introduce you to Trade Credit Insurance. ?

Trade Credit Insurance (TCI) can help alleviate those needs in this time. If you haven’t heard of Trade Credit Insurance before, that's okay. Unfortunately, many brokers do not have this solution top of mind.

Trade Credit Insurance:

• Provides security of non-payment from your clients/ buyers in the event they cannot pay you.
• Provides a comprehensive assessment of your client’s potential credit risk.
• Allows you to view the health of your vendors so you do not experience potential material or supply shortages.
• Allows you to secure the most capital from your lending partners.
• Will let you extend more credit with peace of mind in any economic climate!

I have been in the insurance industry for quite some time, and I still receive blank stares when I mention TCI.

This solution surprises the broker community much like the SVB news surprised many companies. Luckily, we have a dedicated team to help you navigate this.

TCI programs are not just for crisis though.

I have personally worked with Consumer-Packaged Goods companies (maybe one of your favorite companies) that limited their sales after a loss to then grow 20% the next year by using TCI and garnering better shelf space through credit.

All that to say, a time like now does not have to dictate your future!

There are also alternative Trade Credit Protections in the space that can protect your deposits with your bank beyond the FDIC insured amounts.

Understanding your cash position and your risk connected to it should be on the top of your mind as this crisis is far from over.

Ensure you are taking the necessary steps to protect your most important asset right now, your money!

A SVB collapse was probably deemed never to happen.... and it happened.

Your clients may not be affected today, but easily can have issues next week.

In the trade credit space, I have seen too many surprises affect clients not being able to pay their vendors.

You can still take the steps today to protect your cash.

We are a resource to you in these times, as well as when things seem strong, and you are ahead of any potential issue.

If you are interested in allowing us to do a full assessment of your clients and vendors, please let us know.

No one is alone in difficult times. Rely on the resources you have available from your broker partners.

Ryan Hurtado

682-216-9544?