Credit Enhancement

The purpose of this specialist class of insurance is to enhance a corporate borrower’s access to working capital and asset based finance. Credit enhancement insurance seeks to deliver to the insured a more efficient funding package to be offered by a funder by providing certain assurances if the insured defaults against its loan. The insurance offers to the funder some certainty with respect to realisation outcomes against collateral pledged. With credit enhancement, the Insured can benefit from higher collateral leverage, a longer loan term, interest only period, lower amortisation profiles or improved risk pricing offered by the funder.

Credit enhancement insurance policies are issued by International Insurance Company of Hannover Ltd (Australian Branch), a wholly owned subsidiary of AA- S&P rated Hannover Re.

Approved collateral types consist of pooled SME trade accounts and equipment loan/lease receivables, commercial real estate and other capital assets. Credit enhancement insurance is used by our dedicated commercial loan originator, Assetsecure Pty Ltd who arranges highly efficient receivables based working capital funding solutions for growing middle market companies. For more information re this innovative funding selection, please refer to www.assetsecure.com.au.

To discuss your Credit Enhancement insurance requirements, contact Gareth Wilson on (02) 8274 2885.