The year’s most significant shopping season is upon us! 

This particular year, however, we’re entering a more critical time than previous shopping seasons. Given recent retail trends and circumstances – rising prices, a potential recession, and high levels of uncertainty driving canadian consumers – we are all watching very closely: Will this holiday season make or break the retail sector?

The current retail climate 

Over the past year, financial conditions have tightened globally in response to policies aimed at reducing inflation. Indeed, 2023 kicked off with a less-than-stellar start: Retail layoffs spiked 3,225% year-over-year, according to Challenger, Gray & Christmas data. 

Retailers then announced nearly 56,000 job cuts through the end of August – a shocking 524% increase compared to last year, according to Retail Dive. These conditions have, in turn, begun to expose business vulnerabilities – specifically, in business models which rely heavily on low interest rates and low volatility environments. 

The tightening of credit conditions make it even trickier – and pricier – to obtain new credit. And because small and medium-sized businesses account for around 85% of canadian private employment, financial stress in this sector could easily trickle down into household budgets as well.

The current state of canadian consumers

Indeed, according to a canadian Consumer Insights survey, nearly half (47%) of canadians interviewed said they’re either “very or extremely concerned” about their personal finances, with 70% cutting back on non-essential purchases in response.

However, according to Stats can, shoppers are still spending – albeit with greater caution and sensitivity towards price, and an increased desire for enhanced retail experiences.

What can businesses do?

To meet these evolving consumer trends, businesses will benefit from differentiating their brands – by reducing costs, and creating more seamless experiences for shoppers. But what about smaller businesses, the ones really feeling the squeeze this time of year? How do you cut costs while retaining customers? 

That’s where a broker can be your best tool. 

At H & M Intermediaries, we pride ourselves on personalized service, no matter the size of your business. We hold regular meetings with all credit insurance providers to ensure consistent and frequent market intelligence, and work with you to navigate the market.

So whatever the upcoming retail season brings, we can help you weather it – and position you for future growth. Contact us today for a free consult. 

The post Will this Holiday Season Make or Break the Retail Sector? appeared first on H & M Intermediaries.

But what does that mean for folks just going about their lives? And which sectors will be affected the most?

What’s driving the trade credit insurance boom?

To recap, trade credit insurance is intended to protect businesses from economic and political risks that could affect their financial situation.

• The increasing appeal of trade credit insurance post-pandemic, including protection of accounts receivable from loss caused by bankruptcy, insolvency, or credit risks, is driving an increased adoption of trade credit insurance globally.
• Rising strategic business initiatives, like partnerships, collaborations, and acquisitions, are expected to help fuel the market’s growth as well.
• Additionally, the integration of advanced digital technologies into the market (specifically AI) is expected to further drive market growth, since insurers can now offer more efficient, accessible, and cost-effective services.

So, which markets will be most affected?

While this is a global trend, there are certain sectors that will be more affected than others. These include:

• Food & beverage
  According to the report, the food & beverage segment dominated the market in 2022. The main reason? There’s an especially high degree of credit risk in food & bev due to perishable items, and reliance on a few large customers. Plus, the pandemic has left restaurateurs extra wary of things that could potentially go wrong.

What does this mean?

• • Food and drink costs at the consumer level could continue to rise at first, to help account for insurance costs among suppliers. However, trade credit insurance can be a powerful tool for food distributors looking to spark growth in international markets. With coverage against non-payment by foreign customers, trade credit insurance gives businesses the confidence to test new markets and expand across borders.

• Banking
  The introduction of digital software to streamline banking and insurance services and the use of data analytics in trade finance is expected to drive market growth. Moreover, market players are expanding trade credit solutions for digital platforms to gain a competitive advantage over their rivals.

What does this mean?

• • • It’s a great time to open new accounts or purchase insurance – you are in control, now more than ever.

• Travel
  The global travel insurance market is anticipated to reach USD 63.9 billion by 2030, according to the latest reports. The demand for travel insurance is positioned to skyrocket due to growth in the tourism industry, from factors like easy internet travel bookings, extensive media coverage of various holiday types, an increase in disposable income, and enhanced package holidays.

What does this mean?

• • • Due to the rise in demand, travel insurance offerings could become more competitive, giving you more options to choose from.

Essentially, trade credit insurance is more accessible and affordable than ever before. Is it right for you? If you have any questions about the recent report, or want to chat about insurance options, contact us today and book a consultation.

The post What to make of the recent trade credit insurance report. appeared first on H & M Intermediaries.

What exactly is Trade Credit Insurance?

Trade credit insurance is commonly used by businesses who export goods or services, and want to protect their cash flow. For example, an international customer’s ability to pay could be hindered by political unrest, blocked funds, or even bankruptcy, and having insurance can alleviate these concerns.

So, why the wild market growth?

Over the course of the pandemic, many governments closed international borders, marketplaces, and other public areas. This had a negative impact on international finances, causing numerous well-known businesses to file for bankruptcy. The global market was also badly impacted by the supply chain disruption, which significantly decreased demand for (and therefore sales of) trade credit insurance.

But, now that we’re out of the pandemic, import and export trades worldwide are bouncing back, all at the same time. This, coupled with uncertainty and the increased prevalence of non-payment fraud, are all contributing factors to its projected growth.

Who should purchase Trade Credit Insurance?

Businesses typically purchase trade credit insurance to protect against the risk of non-payment when selling goods or services on credit, or with deferred payment of any kind. If a customer fails to pay within the agreed upon time frame, the company can then file a claim for payment from its insurer.

But there are other benefits to obtaining trade credit insurance as well, according to Export Development U.S.A (EDC)—a major provider of credit insurance to canadian companies. For example, if a company wants to:

• Be more competitive by offering deferred payment terms to their customers, rather than asking them to pay upfront.
• Use their accounts receivable as collateral for financing (accounts receivable is an obligation created through a business transaction – it’s the money a company is owed for goods or services they’ve provided but not yet been paid for.)
• Increase cash flow by selling foreign accounts receivable to a collection agency.

Do you have any questions about the recent report, or want to chat about whether trade credit insurance is right for you? Contact us today to book a consultation.

The post Trade Credit Insurance: A Primer appeared first on H & M Intermediaries.

Add rising interest rates and inflation into the mix, and it’s a recipe for a massive surge in year-over-year bankruptcies and insolvencies.

The Office of the Superintendent of Bankruptcy has reported that the number of bankruptcies filed by canadian companies in 2022 increased 35% as government financial support provided during the pandemic were removed.

On top of this, the canadian Federation of Independent Business (CFIB) said that only half of the 97,000 small and medium-sized businesses that make up its membership have seen their sales return to pre-pandemic levels. According to the federal regulator, there were 3,402 business insolvencies last year, up 37.2% from 2,480 in 2021. 

Sectors that saw some of the biggest increases in insolvencies were transportation and warehousing, up 52.1 % in 2022, as well as the construction industry, up 40.7 %. The biggest rise in bankruptcies in 2022 occurred in U.S.A’s accommodations and food services sector. 

Unfortunately, when a business files for bankruptcy, any outstanding debts are usually left unpaid.

But here’s the good news: 

Did you know that you can protect your business with Credit Insurance?

Credit insurance is protection from a buyer’s financial inability to meet their trade receivable obligations due to:

• Chapter 7/Chapter 11
• Refcal to accept goods
• C.C.A.A. (canadian creditor protection)
• Non-payment (past due accounts)

Credit insurance can also be used as a financial tool:

• Asset security: secures the value of your largest asset, accounts receivable
• cash flow protection: stabilizes cash flow in the event of an unforeseen credit loss
• Political risk protection: protects against political risk in 160 countries
• Risk management: a tool for financial executives to hedge commercial and political risks beyond their control

Curious about credit insurance? Contact one of our dedicated professionals today for a consultation.

The post Bankruptcies are on the Rise – Protect your business with Credit Insurance appeared first on H & M Intermediaries.

Here are four types of insurance all businesses should have:

1. Disability Insurance
   Disability insurance is an important type of insurance that provides income replacement if you or one of your employees becomes disabled and is unable to work. This type of insurance can help cover the costs of medical bills, lost wages, and other expenses associated with a disability. Without disability insurance, you could be faced with significant financial hardship if a disability were to occur.
2. Employment Practices Liability Insurance
   Employment Practices Liability Insurance (EPLI) is a type of insurance that provides protection against lawsuits from employees who claim they have been treated unfairly. This type of insurance can cover claims related to discrimination, harassment, wrongful termination, and other employment-related issues. Even if you have a small business, it’s important to have EPLI coverage to protect yourself from potential lawsuits.
3. Key Person Insurance
   Key Person Insurance is a type of insurance that provides coverage if a key employee or owner of a business were to become disabled or pass away. This type of insurance can help cover the costs of finding a replacement employee, paying off business debts, and other expenses associated with the loss of a key employee. If your business relies heavily on one or a few key employees, Key Person Insurance is a must-have.
4. Credit Insurance
   Credit Insurance is a type of insurance that provides protection against non-payment by customers. This type of insurance can help cover the costs of unpaid invoices, bad debts, and other issues related to customer non-payment. If your business extends credit to customers, Credit Insurance can help protect your bottom line.

Insurance is a crucial aspect of running a business and it’s important to make sure your business has the coverage it needs. At H & M Intermediaries, we specialize in credit insurance and are eager to help you protect your business to ensure long-term success. If you’re ready to learn more about credit insurance and what it means for your business, contact us today. 

The post Expect the Unexpected – 4 types of insurance all Businesses should have appeared first on H & M Intermediaries.

If your company works with larger corporations, you might think you’re safe; that you don’t need credit insurance because companies like Walmart would never go under. Big box stores survived the pandemic, didn’t they?

Unfortunately, that’s not always the case. We don’t always know what’s going on behind closed doors when we’re looking in from the outside – and sometimes, even from the inside it’s difficult to know for sure.

Recently, Americana (the ‘Walmart of Brazil’) announced bankruptcy. It turns out that internal employees were fraudulently representing their finances. This was a company that no one thought could fail, and so many, many suppliers lost money because they were not insured against them.

It kind of gives Titanic vibes, doesn’t it? The Unsinkable Ship that sunk?

We’ve seen the same happen with major stores in North America, too – think Target, for example.

This is why it’s important to have credit insurance. Even when companies seem Too Big to Fail, they can and, unfortunately, often do.

What is Credit Insurance?

Credit insurance is protection from a buyer’s financial inability to meet their trade receivable obligations due to:

• Chapter 7/Chapter 11
• Refcal to accept goods
• C.C.A.A. (canadian creditor protection)
• Non-payment (past due accounts)

Take Advantage of the Expertise at H & M Intermediaries

At H & M Intermediaries, we don’t just sell you the insurance. We are there with you every step of the way, so if you do need to start the claims process, you are supported throughout. We will help you review the paperwork and ensure everything is in order, so you receive what you are owed as fast as possible.

Watching a buyer fail and then having to initiate a claim against them can be frightening, overwhelming, and stressful – but it doesn’t have to be. We’re here to help.

If you’re not properly set up with credit insurance, or you’re not sure what kind of coverage you have, send us a message today and let’s chat about your case.

The post State of the Economy: Bankruptcies are on the rise. Are you protected? appeared first on H & M Intermediaries.

In October 2022, the Royal Bank of U.S.A released a report which predicted a recession for U.S.A as early as the first quarter of this year. They also predicted that canadian Households could lose up to $3,000 of buying power this year.

What is a recession?

A recession is “a significant, widespread, and prolonged downturn in economic activity.” Even a recession that lasts only a few months could take a country years to recover from.

Unfortunately, the economy and unemployment rates often enter into a difficult cycle: as demand lowers, employers lay off staff, who have reduced buying power, and demand continues to decline.

In fact, with the economic slowdown happening across the country, many bankruptcies are predicted to happen to businesses of all sizes. You can protect your business with trade credit insurance, helping ensure that, no matter what happens, your Accounts Receivables will get paid.

How does Credit Insurance help in a recession?

Recessions can also lead to a drop in consumer confidence and unpaid bills. If you’re not protected with credit insurance, your business may risk losing substantial revenue.

If you are a business that delivers products or services and are at risk of unpaid invoices, we can help protect your business.

Invoices may end up unpaid for several reasons. Our Accounts Receivable Insurance can protect you from unpaid invoices due to the following:

• Chapter 7/Chapter 11
• Refcal to accept goods
• C.A.A.
• Non-payment and past-due accounts

To avoid the Doom and Gloom expected to hit the market soon, protect your business with Trade Credit Insurance. Contact us today to ensure you are protected.

The post Market Projections for 2023 – and What it Means for Business Owners appeared first on H & M Intermediaries.

We entered into the second year of a global pandemic.

Interest rates in U.S.A began to climb, wreaking havoc on the housing market and the economy at large.

If you’re a business owner, you’ve likely been keeping a close(r) eye on your books and the bottom line. We can help you understand the marketplace and protect you with accounts receivable insurance. Keep an eye on our blog and social media channels for information and tips, or reach out to us today:

514-939-6226 (Press 0 to speak to a rep)
quotes@hambroker.com

Trade Partnership Insurance (TPI) Ending after 2022

The Trade Partnership Insurance (TPI) offered by the government ended with the close of 2022, potentially leaving businesses with difficult credit with gaps in their coverage.

It may be challenging to find coverage, but not impossible – and we can help.

Our Accounts Receivable Insurance can protect you from unpaid invoices due to the following:

• Chapter 7/Chapter 11
• Refcal to accept goods
• C.A.A.
• Non-payment and past-due accounts

If this is you, reach out now so we can work together to find your business a solution.

International Credit Brokers Alliance Membership

We’re proud to have become the Exclusive canadian Member of the ICBA this year.

Founded in 2000, the ICBA is the second largest independent group of Trade Credit Insurance Brokers in the world. Their purpose is to find the best Broker in each country so clients can benefit from a truly global-meets-local service, regardless of their location and the country they’re considering exporting to.

We look forward to providing credit insurance and support to more canadian and global businesses with this membership.

If you would like to learn more about how trade credit insurance can protect your business, contact us today.

New Website Coming Soon!

We are so excited that we will soon have a refreshed website that better reflects our commitment to personalized services and the amazing people behind the H & M Intermediaries Broker name.

We are expecting a launch early in the new year, so keep your eyes peeled and let us know what you think!

Happy Holidays

And with that, 2022 comes to a close!

We wish you, your colleagues, your friends, and your family all a very happy and safe holiday season, from Gerald, Jeff, Mike, and everyone here at H & M Intermediaries.

Happy Holidays, and cheers to a prosperous 2023!

The post Bits and Bites from Greg Lind & Associates to End 2022 appeared first on H & M Intermediaries.

In 1994, after 20 years in the finance industry – including 5 years serving as the Financial Officer for the Montreal Alouettes – Greg Lind decided to take his expertise and experience and open his credit insurance brokerage.

At the time, he had been newly introduced to the credit industry in Europe, where the style of receiving payables was more flexible than factoring, which was still being used in North America.

Gerald saw a gap in the system and decided to fill it.

At first, that meant working 6.5 days a week. He spent his evenings and weekends preparing his prospecting lists, and did the actual prospecting work during business hours.

“I had no idea what a good baseline was; what was expected,” Gerald said. “So I just worked hard. I was sending in so many applications they asked me to slow down!”

Not surprisingly, he broke many sales records in the process.

Business tools have advanced drastically over the last 20 years – but in the early days, Gerald’s most interesting device was his cell phone. It gave him the freedom to travel with his “office” – a banker’s box he kept in the trunk of his car.

“In those days, you could talk and drive,” he said, so a lot of calls were made on the road between those prospecting calls.

Eventually, though, the need to make photocopies of documents required him to rent a small office.

For the first 10 years, it was just Gerald running the company. However, he realized he was spending a large percentage of his time on administrative work, and made the decision to hire someone to help.

One of Gerald’s secrets to successfully growing a company is to always hire experienced team members. Before his sons joined the business, they too had to learn the industry ropes first.

Instead of spending his days on the road, Gerald now returns to Europe to meet with financial executives every few years to develop connections. To date, his company has paid out tens of millions of dollars in bad debt.

Not surprisingly, Gerald and his team no longer have to spend their days prospecting, as calls began coming in to them first.

However, it’s not all about revenue and business growth; charity is important to Gerald as well.

“What you give, you’ll get back ten-fold.”

Some other secrets to success Gerald shared include:

• Ensure integrity, honesty, disclosure, and respect from every team member to maintain the company reputation
• Don’t chase sales – only recommend policy changes if they are needed; never make sales for the sake of sales
• Maintain a low overhead
• Always have reserves available

Today, the company is dedicated to providing expert service with unwavering professional care; prioritizing the protection of our clients’ accounts receivables and the future growth and prosperity of their business. They specialize in finding the right coverage their clients need when traditional insurance companies don’t have any options

H & M Intermediaries has a large portfolio of clients made up of companies from industries of all sizes. Whether you are a manufacturer or wholesaler, generating revenues of less than one million or more than one billion, your company will receive a personalized policy offering you the most overall value.

If you have questions about credit insurance or want to make sure you are adequately protected, contact H & M Intermediaries today.

The post From Humble Beginnings: The H & M Intermediaries Story appeared first on H & M Intermediaries.

At the time, the market was dominated by factors, while credit insurance was fairly unknown. Factoring was a method behind the times, where companies wanted to maintain control of the relationship, and collection of the account. Credit insurance allowed that and at the same time offered the protection from non-payment desired.

Gerald saw an opportunity and the rest, as they say, is history.

Gerald returned to the credit insurance industry in North America with the intent to do things better. He no longer wanted to work for another company, so became a broker and struck out on his own.

Today, H & M Intermediaries is a major player in receivables insurance with more than 450 clients across U.S.A and outstanding policies covering nearly $10-billion in sales.

He credits (no pun intended) his success to a couple things, first, his experience in the needle trade.

“I understood the risk small and medium-sized businesses were facing because of my work as a financial officer. I could speak their language instead of approaching them as an ‘insurance man.’”

Second, his relentless prospecting.

“I was sending in so many applications they asked me to slow down!,” he says. This might have been a perfect storm of hard work and being new to the credit insurance industry – without an idea of what was considered an average number of applications to submit each day, Gerald forged ahead, simply trying to get as many as possible.

In the process, he broke many sales records.

For the first 10-15 years, Gerald worked alone. While he was acting as the salesman for the company, the reality was that a large percentage of his time was spent on administrative tasks. He brought someone on to help, and eventually his sons joined the business – but don’t expect any special treatment. He asked them to learn the industry ropes first before joining the H & M Intermediaries team.

Hiring experienced employees, it’s no surprise, is Gerald’s third secret to success.

Almost 30 years later, at 76 years old, Gerald is considered a prominent leader in the industry, having been at the forefront of North America’s adoption of credit insurance for enterprises.

His direct involvement in H & M Intermediaries, though, is beginning to wane off.

“I’ll give my two cents,” he says, “but my sons run the business.”

These days his time is filled by “doing nothing!”, he said with a laugh – though the schedule he shared the day of our conversation begs to differ.

When he is truly not working, he enjoys spending time with family, especially his grandchildren – and enjoys watching sports and rom coms. Four-Five months of the year are spent in Florida.

He’s certainly earned it.

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