Case Study: Westbridge Foods
Euler Hermes UK and Westbridge Foods: A Recipe for Success
Westbridge Foods has a healthy appetite for credit insurance as it has helped support the company's growth since its creation in 1998. Here's their story.
Value of credit insurance
Westbridge Foods is primarily an importer of raw and cooked poultry and other food-related products, importing more than 42,000 tonnes of products from around the world on an annual basis. It supplies some of the UK's best-known fast food outlets and supermarket chains and is present in 13 countries with operations as far afield as Thailand and China. As the business continues to expand and take on new customers and suppliers internationally, the true importance of credit insurance is even more apparent, limiting its exposure to risk and giving its sales teams greater confidence to take on new business safely.
New trading relationships secured
According to Operations Manager, Yvonne Ford, the principal advantage to credit insurance is the protection against customer insolvency. It also keeps the banks happy as an additional guarantee. But, it is as much about securing new trading relationships: “If the credit insurer is comfortable in giving us a limit on a new customer, even in some of the more difficult markets in the world, then we are able to get on with growing our business.” Indeed, up to 85% of the company’s commercial risk is covered at any one time.
Credit management in line with Risk
There are occasions, however, when a limit is declined. In this instance, further dialogue and information-sharing between Westbridge's customers and the Euler Hermes Risk teams is necessary. This feedback sometimes leads to a positive outcome. However, in some difficult cases when the data still suggests that the risk is too great, the food supplier will look to deal with their buyer on different terms, perhaps on the basis of a pro forma invoice or managing one shipment at a time. The new 30-day Delayed Effect clause also enables Westbridge to find different ways of doing business with a buyer if their limit is withdrawn.
Further Links
Euler Hermes Group
