Credit insurance companies
What is a credit insurance company?
A credit insurance company is an organisation that protects businesses against the risk of non-payment by guaranteeing payment of their customer invoices.
The 3 services provided by a credit insurer
Just like bank guarantees (avalised bills, surety bonds, or letters of credit), credit insurance provides protection - but more importantly, it offers a comprehensive customer risk management service. It enables the assessment of customer creditworthiness, ongoing monitoring of risk evolution (deterioration or improvement), and handling of debt collection and/or compensation.
Customer risk prevention
The credit insurance company assesses and monitors the financial strength of the insured’s customers or prospects in order to anticipate the risk of default.
Whether you are prospecting a new customer or receiving a new order from an existing one, you can consult your credit insurer at any time to know the approved credit limit. You may then request an increase or cancellation of this limit.
By better controlling customer risk, you secure your margins and support more stable business growth.
Debt collection
Whether the receivable is insured or not, the credit insurer relieves the insured company from amicable and/or legal collection procedures.
To do so, the company transfers the overdue file to the insurer within the agreed timeframe. For insured receivables, if the insurer recovers the funds before indemnification, all collected amounts are paid back to the company. For uninsured receivables, the insurer charges a service fee based on the recovered amounts.
Compensation for unpaid invoices
The credit insurance company indemnifies unpaid receivables that were previously approved, whether the customer is in formal insolvency proceedings (bankruptcy) or still operating (in bonis).
We are partners with all credit insurance companies.
