Asset Finance
Our Asset Finance and Political Risks team possesses the knowledge and skills required to help reduce those financial risks commonly faced by businesses working in a growing but uncertain International marketplace.
Asset Value Guarantees
The financial default of a lessee or borrower can negatively impinge on the value of an asset. If rentals are renegotiated, there may be a shortfall between the principal amount outstanding under a loan and the value of the asset. If the asset is repossessed it may result in a forced sale with the potential effect of a further reduction in value. Therefore insurance protection against financial default may provide a solution to retaining asset value.
Credit Default Risk
The financial default of a lessee or borrower can negatively impinge on the value of an asset. If rentals are renegotiated, there may be a shortfall between the principal amount outstanding under a loan and the value of the asset. If the asset is repossessed it may result in a forced sale with the potential effect of a further reduction in value. Therefore insurance protection against financial default may provide a solution to retaining asset value.
Contingent Risk
The obligation to insure leased or financed assets is usually the responsibility of the user of the equipment. The owner of the equipment is therefore often reliant on an insurance where there may be little or no direct control. A default or non-performance of an obligation to insure by the lessee or borrower could potentially leave the owner of the asset financially exposed. A separate Policy of insurance taken out by the owner of the asset specifically to cover the non-performance of the lessees or lenders obligations to insure may be cost effective (as the risk is more remote) as well as providing peace of mind.
