Business intelligence company CubeLogic has announced its support for Trade Credit Insurance as part of an overall risk mitigation strategy.
The company recently reported news it had rolled out the latest version of its RiskCubed platform, version 6.0. RiskCubed supports Trade Credit Insurance, a tool CubeLogic said is growing, especially for players in the energy space. The company operates in the energy market as well as in commodities and the financial space.
“Trade Credit Insurance is an increasingly popular tool to manage accounts receivable risk, effectively converting an unsecured, risky loan to secured collateral,” the company said in its announcement. “As a trade finance instrument, the use of credit insurance is growing rapidly amongst energy market participants, primarily due to its relatively low cost, ability to increase liquidity and [its] risk-conversion properties.”
The company noted while it supported the use of Trade Credit Insurance, the tool should not be used as a replacement for broad risk mitigation strategies.
“This means it should be incorporated into the operational activities and strategic thinking of credit managers and executives, and the most effective way to accomplish this is to have the entire credit portfolio in one place,” CubeLogic’s company news report said.
In a statement, the firm’s CEO, Lee Campbell, noted adding support for Trade Credit Insurance was part of CubeLogic’s efforts to evolve with market trends.
“CubeLogic continues to set the standard for enterprise risk management with the announcement of our support for Trade Credit Insurance,” Campbell said. “As markets evolve, so do we with an eye ever-toward where our customers need us to be tomorrow.”
Last year, credit insurance company Euler Hermes rolled out a Trade Credit Insurance solution designed for small businesses as it looked to protect SMBs when they begin trading overseas. Overseas trade increases SMBs’ exposure to the risk of nonpayment or other B2B payment issues. As such, earlier this year, Euler Hermes struck a partnership with Flowcast to integrate artificial intelligence into the Trade Credit Insurance process, enabling insurers and suppliers to reduce risk when conducting trade abroad.