TRADE CREDIT DEFAULT SWAP
Turn Accounts Receivables Into Revenue in 24 Hours and Eliminate the Risk of Non-payment!
Here's What We Do Better
THE PROBLEM?
As a business owner, extending trade credit to buyers and purchasing on credit from your suppliers is how business gets done. However, a lot of the clients you’ve extended trade credit to may not be able to make payment for goods sold and services rendered on credit for different reasons. On average, one in every ten invoices becomes delinquent, with many becoming an unpaid bad debt. When customers default on their debts, there are devastating consequences to a company’s cash flow, earnings, profit, and capital. In a worst-case scenario, this could put a company out of business.
the cause of THE PROBLEM OF non-payment
-
Nonpayment or unpaid debts usually arises when a customer becomes insolvent and has insufficient funds to pay its debts. Also, customers may be unable to pay their debts due to natural disasters, terrorist risks, economic risks, or pandemic risks as well as political risks such as war, acts of overseas Governments, import/ export restrictions, and currency transfer restrictions, which are beyond their control.
THE ULTIMATE SOLUTION?
-
THE ULTIMATE SOLUTION TO THE PROBLEM OF NON-PAYMENT IS THE TRADE CREDIT DEFAULT SWAP!
-
To protect against the risk of default by buyers and financial losses from nonpayment, businesses commonly take advantage of Trade Credit Default Swap.
WHAT IS TRADE CREDIT DEFAULT SWAP?
-
Trade Credit Default Swap is a financial instrument that protects businesses against the risk of default by buyers and financial losses from nonpayment of goods or services by their buyers. For example, if your customer fails to pay you for goods or services delivered on credit terms, then WTE safeguards your business by paying you 100% of the debt owed by your customers. No loss, no write-off, and no write-down. This ensures that your capital is protected, cash flows are maintained, loan servicing and repayments are enhanced, and earnings are secure from any events of default.
WHY INVEST IN THE TRADE CREDIT DEFAULT SWAP?
01.
YOU CAN ELIMINATE NON-PAYMENT
RISKS FOREVER
You are 100% guaranteed to get paid for your products or services even if your client is insolvent and has insufficient funds to pay its debts.
02.
RECOVER TRADE DEBTS
AND GET PAID IN 24 HOURS
Recover the full cash value of all your bad loans, distressed or non-performing assets, outstanding and non-collectible receivables in 24 hours.
03.
YOU WILL RECEIVE GUARANTEED
PAYMENT IN 24 HOURS.
If your customer fails to pay you on time for goods or services delivered on credit terms, then WTE will pay you 100% of the debt owed in 24 hours.
9 BENEFITS OF the TRADE CREDIT DEFAULT SWAP TO YOUR COMPANY
01
PREVENT LOSSES BEFORE THEY OCCUR
Trade Credit Default Swap can assist by steering businesses away from bad risks in the first place and are often the first to become aware of companies in financial difficulties. Such information may assist in reducing exposure or at least ensuring it is not increased at the wrong moment!
02
PROTECT AGAINST THE RISK OF A CUSTOMER DEFAULT ON SALES MADE ON CREDIT TERMS.
Should an unforeseeable credit event occur, or if your customer fails to pay you on time for goods and/or services supplied on credit terms, then WTE safeguards your business by paying you 100% of the debt you’re owed.
03
REDUCE BAD-DEBT PROVISIONS AND PROTECT THE COMPANY AGAINST BAD DEBTS
Protecting receivables means protection against bad debts, a reduction in bad debt provision, and freed-up capital for a healthier balance sheet. Also, credit default swap premiums are tax-deductible, but bad debt reserves are not.
04
INCREASE SALES TO NEW AND EXISTING CUSTOMERS BY UP TO 1,000% IN 30 DAYS
If receivables are protected by the Credit default swap, a company can safely sell 10X more to existing customers, or go after new customers that may have been perceived as too risky. Thus, a company can increase sales by up to 1,000% in 30 days.
05
INCREASE PROFITS WITHOUT RISKS
Protected trade debts and improved receivables management using Credit Default Swap have shown to increase profitability. A credit default swap can typically offset its own cost many times over, even if the company never makes a claim, by increasing a company’s profits without additional risk.
06
EXPAND INTO NEW INTERNATIONAL MARKETS WITHOUT RISKS
Trade Credit Default Swap can give you protection against unique export risks, help you penetrate new countries, and grow sales exponentially by enabling more competitive terms to be offered to importers than would otherwise be acceptable without any risks.
07
PROTECT PROFITS, CASH FLOW, CAPITAL, AND EMPLOYMENT
If an unexpected loss occurs, Trade Credit Default Swap provides indemnification, thus protecting your revenues, profits, balance sheet, and employees from what could otherwise be a financially catastrophic event. Thus, TCDS may be the wisest investment your company can make to ensure its profits, cash flow, capital, and employment are protected.
08
GAIN UP-TO-DATE INFO FOR BETTER CREDIT DECISIONS
WTE is often significantly better informed with up-to-date information that is not in the public domain than status agencies who are considered by many to be very liberal in their credit opinions as they are of course not taking any risk. WTE’s information database and technology platform will help you reduce operational and informational costs.
09
TRADE CREDIT DEFAULT SWAP CAN ASSIST IN FACILITATING ATTRACTIVE BANK FINANCING
Trade credit default swap can improve a company’s relationship with its lenders by providing security to banks and other types of lenders for trade or export finance. Get better financing terms – Banks will typically lend more capital against protected receivables.