However, credit insurers are frequently accused of not providing sufficient support to companies, of withdrawing their cover in difficult times (particularly during the Covid-19 crisis) or of not covering the risk when it becomes concrete!
So why do so many companies use credit insurance? Chateaudun Credit provides you with some answers.
A tool for information and prevention
The guarantees granted by a credit insurer represent a key indicator of the financial strength of your clients. In addition to the public information provided by commercial information providers (Creditsafe, Altares, etc.), the credit insurer has access to more detailed and confidential information, such as your clients’ payment behaviour with their other suppliers, for example.
An outstanding collection strength
Furthermore, the regional network of credit insurers is very dense (in France and export included), which increases the efficiency of collections. This is a significant advantage if your company has a strong export presence (or wishes to expand into the export market), where dunning and collection management is more complex than in your domestic market.
A support for financing your receivables
When setting up a factoring contract, the factor requires good credit insurance coverage of the clients item (at least 60 to 70%). The factor wishes to finance the company’s clients who are guaranteed by the credit insurer. When a credit insurance policy is already in place, the factor can use the existing guarantees. This speeds up and facilitates its intervention. Otherwise, a credit insurance study must be carried out in parallel with the factoring study.
To go further
Chateaudun Credit, as a specialising credit insurance broker, provides you with a team dedicated to the study, implementation and daily support of your insurance policies.
To know more, do not hesitate to contact us using our contact form or check this page to discover our approach.
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