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Sponsorship receivables are a vital income for sports stadia & professional sports teams

What can be done?

You can protect your sponsorship receivables, which will securitise your cash flow, strengthen your balance sheet and tighten credit control, through a bespoke Credit Insurance policy.

This gives you the confidence to expand the business, safe in the knowledge that the sponsor’s creditworthiness has been checked quickly and efficiently to ensure their ability to pay. It won’t change a bad risk into a good one, but it will prevent a good risk becoming bad.

How does it help me?

The benefits can include:

  • Access to finance and working capital to enable growth and development – securitised against the insured receivables
  • Cover for the length of sponsorship contract/agreement
  • Non-Cancellable Credit Limits
  • Improved cash flow
  • Removes the impact of unexpected bad debts and the impact on profit.
  • Enhanced credit management.
  • Assistance in collection of monies due.
  • Pre-vetting of potential sponsorship partners to identify opportunities as well as risks.

How does it work?

Policy structures range from multi-sponsors (portfolio basis) or for just a single sponsor. Cover can also be structured to reflect the length of the sponsorship contract, providing protection through its lifetime.

In some cases, payments are received on monthly, quarterly or a bi-annual basis. We would work with you to fully understand the contract and arrange cover to reflect this and provide protection for amounts due under a binding contract, but not yet invoiced, if applicable.

You establish credit limits for the sponsors with whom you trade or intend to trade on credit terms based on those in the sponsorship agreement or contract. If the debtor fails, refuses or does not have the ability to honour, in whole or in part, its obligations  of payment due in accordance with the terms and conditions of the sponsorship agreement or contract, you make a claim.

Once a claim is made and paid, any monies received from any replacement sponsor will be treated as recoveries by the insurers and allocated in the same proportion as the claim was paid.

Policy Highlights

  • Binding Contracts Cover.
  • 12-month Policy period.
  • Cover for amounts due but not invoiced.
  • Non-Cancellable Limits.
  • Banks can be included as Loss Payees.
  • Straightforward reporting & Claims procedures.
  • Pre-vetting of potential sponsors.
  • Up to 90% indemnity.

For more information contact Peter Collins on 01702 200222 or email peter@bespokerisk solutions.com

Bespoke Risk Solutions Limited are an Appointed Representative of Leisureworld (GB) Ltd who are authorised and regulated by the Financial Conduct Authority (Financial Services Register No. 749920) You can check these details by visiting www.fca.org.uk

Bespoke Risk Solutions Ltd are registered in England and Wales No. 07292153.  Registered office:  Victoria House, 50 Alexandra Street, Southend-On-Sea, England, SS1 1BN

Leisureworld (GB) Ltd are registered in England & Wales No. 02663024.  Registered office: 1422/24 London Road, Leigh On Sea, Essex, SS9 2UL.

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