Find us in your country to learn more or contact us. We offer extensive economic and business risk resources thanks to our teams of experts around the world. Your bankers and other lenders (including those providing invoice financing!) can be reassured about the financial stability of your company, and more inclined to guarantee financing.Īll this supports your working capital ratio, lifts uncertainty regarding your cash flow, and secures your company’s ability to grow.Īs a global leader in trade credit insurance, Allianz Trade provides world-class knowledge and data to empower your trading decisions. ![]() You are covered for this amount and receive compensation quickly in the event of a bad debt.Ī trade credit insurance policy also gives peace of mind to your finance partners. The trade credit insurer defines a credit limit for each customer corresponding to the maximum recommended trading amount. Trade credit insurance helps you assess the creditworthiness of your customers and therefore help you decide which ones you can safely do business with, without being limited to only one transaction. The recommendations – expected later this month – of the European Commission’s High-Level Expert Group for Sustainable Finance, will play an important role.While invoice financing is one way to avoid cash flow issues, trade credit insurance remains the most reliable way to deal with trade credit risk and avoid cash flow issues. This discussion and reflection still is ongoing. The banking sector nevertheless is already embracing various initiatives to promote sustainability and the energy transition. It is extraordinarily difficult to create proper definitions that are not at odds with the need for accuracy and purity in risk weights. As is the case with other measures, a green supporting factor should be a measure that realistically reflects the real risks for such loans. To learn more about Finance please see our About Us page. The Finance division forms part of UCLs Professional Services. The introduction of a green supporting factor however should not contribute to unbalancing risks in the financial system. Finance Finance Our vision is to provide a professional and high-quality service delivered through supported and enabled staff who add value to the academic mission. It would offer better chances to future winners. Such a factor would mean that banks commit less capital for loans that effectively contribute to accelerating the transition to a sustainable, climate-neutral economy. The European Commission and the European Parliament are considering a ‘green supporting factor’. Finance can be divided broadly into three distinct categories: public. Globally speaking there is no clarity about the definition of ‘brown’, while there is a lack of reliable data on the way that ‘brown’ companies affect the climate. Finance is a term broadly describing the study and system of money, investments, and other financial instruments. Such a factor could negatively impact adequate risk management. This also includes risks relating to climate change and environmental investments.Ī ‘punishing factor’ for loans to ‘brown’ companies – as discussed by Arnout Boot and Dirk Schoenmaker in their in their article for Dutch daily Het Financieele Dagblad on 9 January and their blog post on of 16 January on – is not necessary. Green finance: Encouraging green loans is a sensible ideaĮuropean banks favour a robust financial sector with strong capital buffers that are properly aligned with the risks that banks have to deal with. Originally published in Dutch daily Het Financieele Dagblad on 16 January.
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