Smart Cabinetry: Credit Insurance for Risk Management and Growth

About Smart Cabinetry

Established in 2004, Smart Cabinetry began designing and manufacturing residential cabinets in its facility in New Paris, Indiana. Their designs and manufactures quality residential cabinets use processes and products to ensure the lightest carbon footprint possible. Smart distributes its products from its facility in New Paris, Indiana to dealer networks across the US. When their business began to grow to customers beyond their region, Smart chose credit insurance as the solution that would enable that growth and protect their receivables.

Our Role

How we tailor our support to suit Smart’s needs?

Kirk Barron, Smart Cabinetry president, says having credit insurance brings peace of mind and confidence. Simply knowing that Smart is covered if a customer can't or won't pay provides peace of mind. The confidence is the result of knowing with whom he is doing business. Smart uses Atradius as the "credit arm" of their business, vetting every potential customer with them and adhering to the credit recommendations they provide. As a result their "bad debts have gone way down" and their business has grown. In addition their banks are very supportive as they "love the security" credit insurance provides.

Smart switched to Atradius from another provider 2 years ago and now benefits from competitive pricing, longer claim filing periods, a local underwriter, and fixed credit limit fees. Smart also has a great relationship with Mike Dodson, senior regional manager for Atradius, who Kirk now sees as part of the Smart team.

Smart has not had a claim with Atradius but Kirk Barron still believes he gets great value out of their credit insurance investment. He claims it has helped Smart make money by providing flexible tools and solutions, such as 90 day extended terms, when he wants to secure larger customers.

"Credit insurance has given us the peace of mind and confidence to work with larger projects. I'm surprised more people don't use credit insurance. It has helped us in a big way," says Kirk Barron.
 

Results

Credit insurance is a valuable tool that has supported and protected the growth Smart Cabinetry has pursed in recent years.

By having the confidence to engage in larger projects the company has grown by 25%. Its environmentally responsible cabinetry is now being distributed acrossthe US, for installation in new home construction developments and sale in retail outlets in the southeast and the midwest.

"Atradius is a great partner. They are an integral part of our credit management team," says Kirk Barron.