How do you maintain a fixed course towards development and growth?

The plastics industry is the eighth largest in the United States with over 1 million jobs. In 2019, $432 billion in products were shipped around the globe. The industry is seeing an increase in demand, with growth of 1.6% in the past couple years.

That said, the sector currently struggles with uneven growth that is heavily dependent on end markets. For example, last year 23% of plastics products were used in healthcare and food/beverage services. Atradius can help your business stay alert for changing industry trends and maintain the health of your supply chain.

Plastics Industry
Price Fluctuations
Diverse End Markets
Environmental Regulations

Price Fluctuations Drive the Market

Diverse End Markets

Adhering to Complex Environmental Regulations

Price fluctuations for materials can be catastrophic, especially for small companies. The prices for plastics inputs are volatile and can result in suddenly higher costs to produce end products. Atradius can help mitigate return loss with accurate market insights.

Companies in the plastics industry sell to many diverse end markets, some of which are more stable than others. While healthcare and food services are thriving, for example, the automotive sector is struggling due to COVID-19 lockdowns and the economic recession. For companies that sell primarily to end markets, like plastics, the inconsistent stability of customer industries can be problematic. Trade credit insurance helps you predict which customers are financially sound and which are unstable before you’re left without payment.

Plastics companies must adhere to increasingly complex environmental regulations, or risk steep fines and penalties. Adhering to these requirements costs time and money, making it increasingly important to mitigate any unforeseen loss due to poor customer credit.

Plastics Team

Our business grew 25% last year, and I can confidently attribute 5% of that to Atradius.

Larry Beard - Encom Polymers
Larry Beard
President, EnCom Polymers

What is Credit Insurance?

Trade Credit Insurance is a risk management tool that can help protect your company’s commercial accounts receivable from the devastating effects of loss caused by an insolvency or protracted default of your buyers. No company wants to face the unknown. At Atradius, we give our clients peace of mind knowing that their credit insurance policy protects them from a customer’s sudden inability to pay.

Benefits to Credit Insurance

Risk Management
Sales Expansion
Increased Funding
Cost Effective

Risk Management

Sales Expansion

Increased Funding Options

Cost Effective

Atradius analyzes industry trends and the risk of every buyer to ensure you are working with stable customers. If a previously stable customer starts showing signs of deteriorating payment trends, we alert you right away so you can take steps to protect and ensure your accounts receivable. We evaluate the supply chain from each angle and can alert our clients to trouble coming down the pipeline before there is a loss.

For companies seeking to safely grow sales, working capital is essential. If your company doesn’t feel comfortable increasing existing credit lines or initiating credit lines in new markets, we can help. We are a global company with a presence on every continent. Our innovative services provide you with the practical tools you need to manage your receivables, building the foundation for solid business growth and success.

Companies in the midst of an intense growth phase may need to put up accounts receivable as capital to receive additional funds from a bank. Having a trade credit insurance policy with Atradius that mitigates your risk means banks are more comfortable loaning the funds you need.

Our policies are cost effective. On average, the rate we charge falls to less than one half of 1%. If a company sets aside a debt reserve of 5%, our services are extremely cost effective, because with our coverage you will always get any lost money back.