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 seek to deliver a more efficient funding package by providing certain assurances if the insured defaults against its loan.
The insurance offers more certainty to the funder 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 SE (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.
To discuss your Credit Enhancement insurance requirements, contact Martin McConnell on (02) 8274 2828 or Gareth Wilson on (02) 8274 2885.