A leading biofuels producer, Argent Energy requires precise, accurate and in-depth credit risk analysis to support its UK and international sales operations. Since coming on stream a year ago, Coface has provided valuable business insights so Argent can evaluate potential clients and make swift but effective decisions on credit limits.
Company profile:
Established in 2001, Argent Energy specialises in converting waste oil into low carbon biodiesel and other biofuels which are used in transport, heating and the chemical industry. Based in the UK and with plants in Ellesmere Port and Amsterdam, Argent has more than 100 UK and international customers, with annual sales of €400 million (2023).
Coface solution:
Coface Business Information (BI) services combine the latest financial, trading, payment, and market data from our global database with exclusive insights from our 700 experts and risk underwriters. Companies can monitor their risk exposure, check out new trade partners and trade with confidence in new markets with access to our powerful interactive risk management platform, in-depth reports and credit opinions.
Result:
The combination of local knowledge, industry insights, and proactive support makes Coface a highly valuable partner.” Matt Ahmad, Treasury Manager and Credit Manager at Argent Energy.
A growth sector
Argent Energy are pioneers in renewable energy, helping to support the transition from oil and gas to greener alternatives. The company’s two plants in the UK and the Netherlands convert waste fats and oils into around 195,000 metric tonnes of sustainable second-generation biodiesel each year. To minimise waste and add value, Argent also converts by-products of the process into bio fuel oil, fertiliser and glycerine.
With global demand for renewable fuels expected to increase by 20% by 2030 according to the IEA, Argent is on a mission to decarbonise transport worldwide. But as it looks to increase its domestic and international sales in a volatile sector, the company also needs to carry out effective due diligence on customers and set safe credit limits.
Time-saving
Argent uses Coface Business Information to support its credit management process, as Treasury Manager and Credit Manager, Matt Ahmad explains. “I rely on Coface to provide clear, actionable insights for decision-making. Their reports help us quickly evaluate potential customers and determine credit limits and trading terms without the need for extensive internal analysis so we can streamline our onboarding process for new customers. This allows me to focus on other priorities while still ensuring robust credit risk management for our sales operations.”
Global coverage but with a human touch
Having access to Coface’s global market data and analysis means Argent is able to proactively manage its trade risk when considering new export customers. “We were dealing with a client in Bulgaria whose credit rating raised concerns,” Matt remembers. “Coface identified a high probability of default, and based on their assessment, we requested the client to provide a Letter of Credit. This precaution turned out to be a great decision, as it safeguarded our business interests.”
At the same time, Matt is impressed with the local expertise and industry knowledge that Coface’s analysts bring to the table. “They aren’t just number crunchers - their willingness to engage directly with us, listen to our case, and provide tailored solutions adds tremendous value,” he says.
A “highly valuable partner”
Matt has no hesitation in recommending Coface’s “precise and in-depth” business information services. He concludes: “Coface stands out because they combine credit insurance with in-depth credit analysis.
“The fact that Coface has ‘skin in the game’ as an insurer makes their credit ratings more reliable, while their agents and analysts on the ground understand specific industries, sectors and local economic conditions so we get a more nuanced perspective. The combination of local knowledge, industry insights, and proactive support makes Coface a highly valuable partner.”
