Star Micronics use Coface’s flexible credit insurance to support their strategic development and growth
Company: Star Micronics Europe Ltd is responsible for the sale of Point of Sale Printers and Printer Mechanisms into the EMEA region, Russia and India.
Business situation: Star Micronics needed a credit insurer that would support some of the unstable or less structured economies included in that territory.
Solution: Coface’s Open Trader - a whole turnover policy, offering domestic and international cover against non-payment of debts, insolvency and political risk.
Result: Star Micronics is now able to trade safely in many countries, including the less structured or unstable economies which represent good growth opportunities.
Star Micronics Europe Ltd is responsible for the sale of computerised printers. Their expertise in the micro electronics field has led to a diverse product range including an extensive POS Printer portfolio, encompassing new ECO Printers. The European Head Office is in High Wycombe, Buckinghamshire. Its annual turnover is £25million, 80% of which is export.
Stephen Mussett, Financial Director at Star Micronics Europe Ltd gives the business situation prior to implementing Coface’s solution:
“Three years ago, when I arrived at Star Micronics, I found that although Star Micronics had a policy of insuring its accounts receivable, its current insurer was reluctant to take risk in some of the less structured or unstable economies that form part of the EMEA territory. As some of these areas represent good opportunities for growth, there was clearly a dilemma between growing sales and increasing the risk of losses through bad debt, even though we were paying a considerable but fruitless premium for credit insurance.”
The broker set about finding Star a more suitable credit insurer.
The Coface Solution
Stephen explains the reasons why Star selected Coface.
“Of the credit insurers we considered, the one which appeared the most suitable from the outset was Coface, for the following reasons:
- Coface understand how companies in the supply chain operate, and underwrite on positives of a risk, not just its balance sheet.
- The premium represents value for money. This year Star will spend more on credit insurance, but will have had the benefit of greater cover.
- As a result we are gaining penetration in more markets – credit insurance has become a strategic business tool for us.
- The policy was presented clearly, and is easy to administer through Coface's online policy management system, “Cofanet”.
- Coface's underwriters are visible and can provide clarity as to their decisions.
- The Senior Export Underwriter met with us so that he could understand our business and how we want to move forward, and also we could understand how Coface could help. We maintain regular contact with him.
Star Micronics' turnover is 80% export and it uses a Coface Globalliance Open Trader Policy to insure its £ 25million turnover.
Stephen explains how Coface’s credit insurance has become a strategic tool for Star's business:
“We had no hesitation in moving our business to Coface. The improvement over our previous arrangement is tremendous. The transition period was smooth, due to the efforts of Coface and our broker. The policy fulfills all of our requirements. Our salespeople are now venturing into new territories, confident that they will be more likely to do business, instead of experiencing the frustration of losing a potential order due to credit issues. Star is delighted with Coface.”