A specialist timber and forest products company operates in a high value, lower margin industry, which in turn means that the credit risk is high compared to margins. However, this hasn’t prevented the company from trading successfully since it was established in 1975. On the contrary, it has gone from strength to strength throughout the years, extending its range to include manufactured garden products, log cabins and timber homes.
According to Dave Spilling, Company Secretary and CFO, this development is greatly assisted thanks to the company’s proactive long-term approach to managing risk. “Credit Insurance has been part of our business model for nearly 30 years. It remains very much a key element of our business strategy today, and we currently have a whole turnover policy which protects our sales ledger from bad debt” he said.
For many years the company sourced its Credit Insurance directly from the underwriter. However, the recent downturn prompted the company to look for independent advice, as Dave explained: “The recession was a big driver in our decision to use a broker as the credit insurance scene had changed so much. Having a specialist like CBF on our side means we have an extra layer of protection and advice to fortify our business model.”
“It’s very important now that we can bat our ideas and thoughts through a specialist, especially in these unprecedented times” he continued. “Plus we know that CBF are constantly monitoring the changing market in order to get us the best deals with the insurers. I would definitely recommend anyone to speak to CBF – not only are they professional, helpful and realistic, they add a really valuable dimension to our business.”