Funding Small Business Growth Plans

Many of Mentor Works services are based on helping SMEs grow international sales, and part of those development strategies includes Accounts Receivable Insurance. Regardless of your annual revenue sales, if you have customers that can’t – or won’t – pay, then securing credit insurance may prove to be the smartest option to free up working capital and provide funding for small businesses.

Business Funding Canada and Abroad

When asked how to free up funds to promote in new markets, pursue new customers, keep your operations and sales cycles running smoothly, not hinder research and development funding and provide favourable payment terms to your customers, credit insurance is usually the top strategy for any Canadian business that exports goods or services.

Protection against Risks on Sales Development

Credit insurance may protect small businesses from up to 90% of the losses resulting from non-payment risks. These risks may be experienced from:

  1. Refusal of a sales contract where the value of goods, as well as for costs associated with storing, returning or diverting goods to a new customer has been incurred.
  2. Political unrest in foreign markets
  3. Blocked Funds or transfer difficulties by foreign governments on funds out of their country
  4. Cancellation of an international contract and the costs of work-in-process (WIP)
  5. Default on payment,  a customer’s bankruptcy or other forms of debt rescheduling
  6. Non-renewal or cancellation of import or export permits

Our Recommendations for Credit Insurance

Our experience suggests the specialist, Mark Hall, at Dan Lawrie Insurance Brokers Ltd for a great selection of Insurance plans. Mark is connected directly to the Underwriters of the seven Insurers that offer this product in Canada.   A second option to support funding opportunities for exporting goods would include exploring the other program offerings of Export Development Canada . Previously, we discussed the EDC’s Export Guarantee Program and EDC’s Buyer Financing programs. Various bonding and guarantee programs exist as well from EDC based on account performance, surety bonds both internationally and domestically, and foreign exchange facility guarantees.

Credit insurance is a cost-effective management tool to maximize your credit departments’ effectiveness with an in-depth analysis of a multitude of sources. In addition, bank advancing funds will usually match the Policy indemnity (i.e. typically 90%) and will include aging accounts over 90 days. At the end of the process, you have the ability to expand product sales securely at home and abroad.

For further information of funding for small businesses, please review Mentor Works Government Funding strategies or check the Blog for detailed information on other economic development programs and funding services Ontario.

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