The main objective of credit insurance is to protect your company against unpaid accounts receivable. Failure of payment could be caused by a client's insolvency or political risk. It offers you valuable protection in today's volatile business environment, especially in foreign trade. Credit Insurance provides your company with the following benefits:
On average about 40% of a company's assets are from the debtors ledger; a significant part of your business that should be protected. A Bad Debt Reserve is not the answer; it won't put cash back into your Company's bank account.
Protect your liquidity and cash flow
Apart from the long term loss of a customer and future revenue streams, there is the immediate effect on cash flow, which could even lead to your own Company facing bankruptcy.
Confidence to expand
You can grow your business in confidence knowing that your Trade Credit Risks are covered and even be more aggressive in your domestic and export sales by giving higher and longer credit terms to your customers.
Strengthen your credit management
Even if you have effective stringent, credit control procedures in place, you can further enhance the quality of decisions made on credit limits through working closely with us and gaining access to the credit insurance company's extensive database.
By protecting your Debtors Ledger you can obtain more efficient financing from your banks. Most banks recognize credit insurance as collateral security when providing financing for domestic or export sales. Your shareholders can also appreciate that their assets are being well-protected and that financial corporate obligations are being met.
These are the different types of credit insurance available:
- Whole Turnover Insurance more information
- Excess Loss / Catastrophe Insurance more information
- Single Buyer Insurance more information
- Named Buyer Insurance more information
- Selective Credit Insurance more information