Bonds, Surety & Credit Insurance
Bonds, Surety & Credit Insurance
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In a fast paced industry such as aviation, business does not wait. Flycovr puts protecting your business at the forefront of every decision you make, and paramount to this, is making sure that your business is secure both contractually and financially.
Being able to move quickly and maintain flexibility, ensures you do not miss out on the commercial opportunities that may present themselves.
Through Flycovr you can support your business cash flow, reach new financial opportunities and secure yourselves contractually, through our panel of bonds, surety and credit insurance specialists.
Credit insurance policies protect businesses against the risk of non-payment. This can be through customers that owe money for services or products received, and they are unable to pay at all or continuously miss payments. This is typically following customer defaulting in payment terms or going insolvent and unable to pay their debts whatsoever.
Credit insurance enables supply chain operators to extend their credit lines to new or repeat customers and gives the confidence to expand partnership lines and capacity. Generally speaking credit insurance is for products or services expected to be delivered within 12 months, but options can be expanded across entire sales agreements or insure against one off single risks.
Trade FinanceTrade Finance can support businesses to flourish in global supply chain by making finance possible and perhaps, easier, for importers and exporters to trade aircraft parts. Trade finance covers many areas and comes with risks that our specialists’ partners can speak you through. Flycovr can support you in finding the right regulated advice through a specialist regulated partner on our panel.
Bonds and SuretySurety bonds offer independent security to businesses against losses relating to the performance of a contract. An increasing proportion of contracts within the aviation supply chain today, require some sort of security, such as a surety bond or a guarantee, for contractual obligations.
Placing bonds within the insurance market, enables you to release lines of credit with a bank and it can directly impact the flexibility required for working capital purposes and to finance investment opportunities.
Flycovr can introduce you to specialists whom can help your business implement a strategy and solution to release credit capacity, to not only mitigate financial risk, but strengthen your liquidity position.
What is surety?
A surety is a one party guaranteeing the debts of another party. This party will assume responsibility for paying of the debt if the debtor policy defaults or is unable to make payments.
The party that guarantees the debt (often a bank) is referred to as the surety, or can be also known as the guarantor. This can help reduce risk of borrowing, improve rates for cash flow and is legally binding.
Traditional insurance is different to a security bond or guarantee, as the latter holds recourse rights against the company that has been covered. The company remains liable for any payments received under the form of a guarantee or surety bond.