COMMERCIAL PROFILE | COFACE Left: Coface has a direct presence in 67 countries around the world and provides solutions to customers in 99 countries
Going global without the risk Many businesses have concerns about the risks of international trade. However, with the right safeguards it is possible to reap financial rewards, as Coface’s Roslyn Keogh explains.
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reland has bounced back from the financial turmoil of 2010, becoming the fastest growing economy in the eurozone in 2014. This success owes much to the country’s dynamic export businesses who have shown that overseas trade is a great way to increase productivity, innovation and sales, as well as delivering a welcome boost to the domestic economy. Irish exports grew by 13.6% in the second quarter of 2015, buoyed by the weakened euro, and the Irish Government is understandably keen to encourage more companies to start their own export drive. Announcing one initiative, Minister for Foreign Affairs and Trade Charles Flanagan TD said: “The Government has committed to the goal of full employment by 2018 and increased Irish exports are a crucial part of our plan for jobs and growth.”
HUB OF GROWTH Of course, Ireland has long been one of the world’s most open economies and the last 10 years have seen the country become a hub for engineering, 2
Business & Finance October 2015
technology and services, alongside household names in traditionally strong sectors such as agri-foods. And there are emerging opportunities in countries beyond the eurozone and the US with the potential for dynamic growth, such as the Philippines, India and Sri Lanka.
KEEP INFORMED Sadly, many businesses are inhibited by the fear of financial losses but it would be a shame to miss out on the commercial rewards that export can bring. It is easier – and much less expensive – than you might imagine to access reliable data about the financial health of foreign trading partners and protect your sales if the worst should happen. Working with a reputable credit insurer, such as Coface, ensures you are both informed and protected by offering: • Up-to-date and accurate intelligence about the trading record and bad debt risk of domestic and overseas companies – It can be difficult and time-consuming
to research potential trading partners yourself, especially those based overseas, but Coface has access to a global database which tracks the trading behaviour of over 65 million companies, as well as underwriters on the ground to monitor local trends. This means we can usually give clients an immediate evaluation of risk. • Protection from losses arising from customer insolvency or protracted late payment – Credit insurance means you can be confident of recovering the value of an unforeseen bad debt.
MISSION CRITICAL Coface’s TradeLiner is one of a range of policies for both domestic and overseas trade, which include credit assessments, insurance and worldwide debt collection. It can be customised from a range of options to suit individual business requirements, including political risk cover for exporters, and it gives you the flexibility to respond quickly to new opportunities. You can even decide to have your claim paid earlier than normal if it is critical to your business. Policyholders have access to CofaNet Essentials, a secure online tool that allows them to apply for instant credit limits on new customers and notify unpaid invoices. RISK MANAGEMENT There are great opportunities for Irish businesses to build on export successes of recent years, provided they manage the risk sensibly. Working with an established credit insurance partner, especially one with global reach, is a great way to grow your business safely. n For more information about Coface in Ireland, contact Roslyn Keogh, country manager, Coface Ireland: w: coface.ie e: roslyn.keogh@coface.com t: +353 1 230 4669