Ensure Your Outstanding Debt Is Covered
Protect your long-term sustainability as a credit provider
In the dynamic landscape of financial lending, credit insurance emerges as an essential tool for credit providers, offering a layer of security against the inherent risks of defaults and insolvencies. Tailored for a diverse range of credit institutions, this product provides coverage for potential losses due to non-payment, ensuring stable cash flow and financial predictability. It’s designed to be adaptable, allowing for customization according to the unique risk profiles and requirements of different lenders.
Whether operating domestically or internationally, credit providers can benefit from this insurance, enhancing the quality of their loan portfolios, attracting a broader client base with the promise of secure lending, and maintaining compliance with evolving regulatory standards. This credit insurance solution not only mitigates financial risks but also serves as a strategic tool for sustainable growth in the competitive world of credit provision.
Frequently asked questions
What is credit insurance?
Credit insurance is designed to protect against the financial risk of a customer’s inability to pay their debts. It covers a range of risks, both commercial and political, ensuring that businesses are safeguarded against unpaid invoices and contractual breaches.
How does credit insurance work?
The process involves assessing the creditworthiness of customers and the associated country risk. Upon agreement on the premium, the policyholder is insured for the specified transactions. In the event of non-payment, the insurer compensates the policyholder.
Why should you get credit insurance?
Credit insurance is essential to mitigate risks associated with customer bankruptcy, contract cancellations, delivery issues, and payment failures. It ensures that businesses receive payment, even in adverse situations.
Is credit insurance necessary for all customers?
It’s not mandatory for all customers. Businesses can opt for selective coverage based on risk assessment or choose comprehensive policies for broader protection.
What are the advantages of credit insurance?
- Ensures payment certainty.
- Aids in debt recovery.
- Available to all business sizes.
- Provides competitive advantages such as enhanced bank financing options.
What is the cost of credit insurance?
The cost varies based on debtor creditworthiness, geographical factors, amount insured, and the inclusion of additional risks. The premium rate payable is 0.45%.