Since 1990, Weston Forest Products, one of North America’s leading full-service distributors and re-manufacturers of industrial lumber, has incorporated credit insurance into its business strategy. The Ontario-based company extends credit daily and the unique business intelligence found in Euler Hermes’ database helps the company make informed selling decisions to profitably steer its business.
Uncertainty too often caused the company to be overly conservative with its credit limits, which inhibited growth.
“When you’re in a position of extending credit to a new customer, your decision can’t wait. They make it very quick and easy for us to get an opinion on whether we should be pursuing that business” said Rick Ekstein, former President and CEO of Weston Forest Products, in reference to their partnership with Euler Hermes.
Trade credit insurance allows the company to capitalize on opportunities while comfortably reducing risk because better knowledge about its customers lets it extend higher limits and be more competitive.
How would your company’s growth strategy be different if you knew you would get paid for everything you sold?
If you’re like most Euler Hermes clients, you would increase sales to new customers and extend higher limits to current ones – all with the peace of mind that you are protecting your business from catastrophic risk.
“Euler Hermes has made our risk management policies better. It’s given us more structure, more accountability, and made us a better company. Over the years, our partnership with Euler Hermes has proven to be a good investment. Even if I were to never make a claim, I would look at it not as a business cost but as an investment with a return” said Ekstein.
The ultimate goal of a trade credit insurance policy is not to simply pay claims should they arise, but more importantly to help policyholders avoid foreseeable losses. If an unforeseeable loss should occur, the indemnification aspect of the trade credit insurance policy comes into play.
“Credit insurance provides comfort to all of our stakeholders,” said Ekstein. “Our sales people know they are selling to worthwhile customers, our suppliers give us more credit knowing we have coverage, our banks lend more, and we have the peace of mind knowing we are covered if a loss occurs.”
To find out how other Euler Hermes customers use credit insurance to grow their business, visit our case study page. Or, to find out how credit insurance actually works, visit our blog How to Grow Your Business Safely.