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New kid on the block MicroBonds™

My love for and deep commitment to trade credit insurance notwithstanding, I'd like to introduce you to an alternative: MicroBonds™. Domiciled in the UK, BondAval just this month introduced their trademarked product to the US market. MicroBonds™ secure credit with a fintech twist - they leverage API technology to underwrite SMEs on scale to produce a competitively priced product. Although, perhaps their most significant value is in the efficiency they create for credit management teams typically qualifying and monitoring credit for hundreds or thousands of SMEs.

Although I feel a bit like I'm cheating on my first love, let me list what I like about MicroBonds™:

  • No limit fees and no need to qualify buyers (BondAval does all the work in this regard)

  • No policy compliance i.e., no cease shipment clause, no past due reporting requirement, no claim waiting period, no claim filing deadline

  • No deductible, 100% indemnification, irrevocable

  • Payouts requested with a press of a button and contractually obligated to be processed within five days

If you'd like to request a quote, the only items required are an Excel spreadsheet listing your buyers (including addresses & limit requested) and, if applicable, your standard supplier contract.

Reply to this email if you would be interested in learning more about BondAval. Trade Credit Specialty is always happy to introduce clients to ideas that will improve business by creating efficiency.

Finally, a few bullets on BondAval :

  • Insurtech using surety bonds as the foundation for a new credit security instrument - MicroBonds™

  • Launched in Q3 2021 (UK) and Q4 2021 (USA)

  • Their ‘A-rated’ security is secured by binding agreements with Arch, Hamilton, HIDAC and Fortegra

  • Raised $9m+ from tier 1 VCs to scale on both sides of the Atlantic

  • North American HQ in Austin (TX) and their European Headquarters in London (UK).

  • Their two 45 second product videos provide a concise overview of the product

  • BondAval for suppliers – link

  • BondAval for buyers – link

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