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HOW TO EFFECTIVELY INCREASE COMPANY

WORKING CAPITAL

Greenpoint Agency Inc. specializes in combining financial insurance with commercial - industrial insurance.

 

Think of a chef in your favorite restaurant!

 

We have 40  years of the right combination of  knowledge, expertise, and experience in both insurance, finance, and business law, to assist in effectively Increasing a Company's Working Capital and Capitalization. Our combined financial, legal, and insurance staff will work with your key marketing, accounting, and legal personnel to improve your overall business plan. 

 

We accomplish this by merging together planning a financial and business insurance plan that enables our clients to:

 

1. Effectuate a "Risk Transfer" of the possible of loss of capital from the company to insurance companies. Effectively, the insurance company assumes the major burden of a capital loss from various types of business risks. This assists in convincing banks (and other lenders) to Increase Maximum Lending Limits (and terms).

2. Increase the amount of "on-credit sales" using both the company's own capital and the additional working capital available from increased loan availability, while simultaneously decreasing the risk of non-payment receivables losses using custom tailored credit insurance. Contact us for further discussions as to how to accomplish this goal.

3. Instead of risking the company's capital, place an "insurance company's capital at risk of loss" for:

a. Customer Non-Payment of Receivables, for:

i. On credit sales of Routine and Unusual goods and services.

ii. Unpaid, undelivered Work-In-Process.

b. Installment contractor product non-delivery resulting from insolvency (bankruptcy), and resulting in loss of substantial Deposit Payment. Deposit Refund Insurance for the insured company's long term installment delivery contracts, to purchase components for its manufactured goods, from a component contractor (manufacturer).

4. When combining the right combination of property and liability insurance (Including products liability), with Reducing the risk of loss that can result from non-payment of accounts receivables (both short and intermediate term credit to customers),  the results will:

a. Help our Insurance Clients Profitably Increase their Sales and Profits, and

b. Protect the Insured's "Business Capital" Against Financial Risks of  Loss.

c. Insure Against Business Interruption and also Unanticipated Loss to Inventory, Equipment and other Assets. 

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"Renting More Capital" For Your Company

A More Profitable View of Insurance

for Industrial - Commercial Companies

 

Most people consider insurance premiums an expense. From their viewpoint, they are correct. Only, are they really "missing the forest by looking at the trees"?

 

We look at Business Insurance from a different perspective than most business business owners and investors.

 

Our View Is:

 

Every company has a limited amount of its own Business Working Capital. In order to grow and prosper, the company needs access to additional Working Capital. 

 

Goal:

 

Increase the company's sales volume for its goods and services, while not disproportionately increasing its expenses, nor increasing the business risk to its own Business's  Stockholder's Equity.

 

Conclusion:    Put a third party's capital at risk, especially when its cost is prepaid, with no repayment requirements.

 

Method:

 

Since your company has limited Business  Working Capital, you need to:

1. "Rent the Insurance Company's Capital and Put it to Work For Your Company."

 

2. Use the "Rented Capital" (The insurance company's) to Increase Your Sales and Profits.

 

a. The "Rented Capital" is used to increase sales revenue or to protect the business against loss of its own working capital due to Non-Payment of Accounts Receivables.

 

• Credit Insurance is a Risk Transfer Device. Credit Insurance can be used comfortably to Increase Sales On Credit; increasing Sales Revenue without increasing the Risk of Loss due to     
  Non-Payment of Customer Receivables is an Optimum Goal for a business.

 

• If the customer doesn't pay the invoice, a claim is made to the credit insurance company. The Insurance Company lost its capital (to the extent of the claim payment.).

 

• If the Claim Payment exceeds the order's Cost of Goods Sold, the Insured Business did not lose Capital. Instead the Insurance Company lost its Capital.

 

• The Credit Insurance Enabled the Insured Business to Expand Its Sales Revenue. Increasing Sales Revenue by expanding Credit Sales can be used not only in the Business's existing marketing footprint, but also Enables Expansion Into New Geographic Markets and to New Customers, Without Substantially Increasing Risk of Loss to the Insured Business's Capitalization.

 

• Credit Insurance often enables an Insured Business to expand into more international sales. The Credit Insurance Company's knowledge of International Customers Credit Quality is often made available to the Insured Business Client.

 

b. Bank Loan Terms for Commercial Lines of Credit Are Frequently Improved, when Receivables are Credit Insured.

 

• Since Credit Insurance decreases the Non-Payment Risk of Loss, banks will often expand the availability of lines of credit, and even reduce the cost of borrowing; Loan Collateral Insured against Non-Payment with Credit Insurance makes lending to a particular borrower more attractive, because risk of loss to the lender is decreased.

 

• Liberalization of bank credit is often invaluable because it is the fuel to accelerate the sales expansion engine; the credit insurance is the pilot light that enables the seller to continuously borrow more working capital, causing the insured's business's rate of sales expansion to accelerate, when Trade Credit Insurance is added into the company's business formula. 

 

 

C. Credit Insurance enables the Insured Business to expand its leverage using the Credit Insurance Company's Capital as its "Rented Capital".

• Sales can increase, short term and long term.
• Profits may increase, short term and long term.
• Leverage increases, due to the need to borrow for expansion and increase credit sales.
•  
  Risk is Not Proportionately Increased because Most Risk has been Transferred to the Credit Insurance Company (Providing Credit Insurance is used to offset the possibility of loss to the Insured Business's Capitalization).

 

D. Please contact us to obtain more detailed information. We are here to assist our insurance clients.

 

Remember:

 

• Credit Insurance Effectively Provides "Rented Capital" (available from an insurance company). "Rented Capital does not have to be repaid, if used to pay credit insurance claims to the Insured Business.

 

• The Paid Claim Amount May Exceed the Cost of Goods Sold, if markup on Sales is Sufficient.

 

 

Note: The constructive comments of business professionals, lawyers, and accountants, will be sincerely appreciated.

 

Norman M. Carniol, Esq.

Chief Executive Officer

Greenpoint Agency, Inc.

 

See the email form below.

 

Direct Calls: (347) 551 - 0800

 

Executive Offices Calls: (718) 591 - 2400