Trade Credit Insurance
Protecting your trade receivables globally with a local approach
What is credit insurance?
Trade Credit Insurance is a tool to protect your accounts receivable against customers unable to pay due to insolvency, non-payment and political risk. At the same time, adequately used, it can be leveraged with your financial institutions to provide you with cash flow and funding solutions.
Why should I get credit insurance?
A very efficient tool to increase profitability.
Trade Credit Insurance is a way to develop sales, protect gross margin and enhance efficiency of credit Management processes with objective to reduce the DSO (Days Sales Outstanding).
How does it work ?
Business Accelerator
Identify the credit-worthiness of customers before selling. Make the right decision more quickly. Support the development of sales and penetrate new countries.
Increase performance
Save time and money to collect financial information. Outsource cash collection to focus on prevention. Help to structure credit management processes.
Protect your trade receivables
Be paid in case of insolvency or late payment. Strengthen the balance sheet. Reduce bad debt reserves.
Types of Credit Insurance
- International programme
- Whole turnover policy
- Excess of loss policy
- Single risk/ buyer policy
- Top-up cover
International programme
How does it work?
A customized, coordinated, programme that provides worldwide cover, usually under the same conditions, irrespective of the location of the subsidiary companies.
The level of centralization is tailored according to your requirements and the structure of your organization.
Who does it apply to?
Companies operating internationally.
Whole turnover policy
How does it work?
A policy that covers total credit sales for non-payment under one comprehensive policy insuring both domestic and export transactions.
Who does it apply to?
Companies selling within a domestic market or internationally.
Excess of loss policy
How does it work?
A policy that covers losses above an annual, aggregated level of bad debt. This is designed to protect you against payment default by major customers or against an unusual level of aggregated bad debt in any one year.
Who does it apply to?
Companies with mature credit management processes in place, willing to absorb an amount of bad debt before insurers settle claims.
Single risk/ buyer policy
How does it work?
A policy that covers annual sales to one customer, or covers a single contract with one customer that represents a significant volume of sales.
Who does it apply to?
Companies that are exposed to an exceptional level on one buyer or market risk, or a large single contract or when security is demanded by the financing bank.
Top-up cover
How does it work?
A solution which provides cover for specified customers in excess of a credit limit established by the same or a different insurer. This additional cover is agreed for a fixed period for additional premium.
Who does it apply to?
Companies operating with some strategic but under-covered customers.
