CREDIT INSURANCE
Credit Insurance is insurance for your company's receivables, thus guaranteeing your cash flow.
This insurance is subdivided into 2 modalities:
Domestic Credit Insurance
Export Credit Insurance
This is protection against default on installment sales. This type of insurance compensates the insured company (creditor) that does not receive the credits granted to its customers (debtors). It can be contracted for installment sales in the domestic market and for financed export operations.
In today's market, your company needs to offer credit to its customers to remain competitive. Credit Insurance protects your business' cash flow against the risk of default or delays in sales of products and services made on credit, both in the local market and for export.
ADVANTAGES:
BETTER RISK MANAGEMENT
Reduces the provision for doubtful debt losses
ENABLES NEW MARKETS
Export credit and domestic credit insurance can open new markets for your company;
CUSTOMER FOLLOW-UP
Credit insurers have databases with updated information about companies, as well as economic information from countries that purchase their products and/or services;
GOOD BODY GOVERNANCE PRACTICE
It improves your credit risk management, and is also a good Corporate Governance practice;
FINANCE YOUR BUSINESS
Credit insurance can help finance your business
INSURANCE COMPANY ADVISORY
Insurance companies are able to calculate and recommend the ideal credit limit for each buyer, and offer advice on collection services;
ENABLES GREATER EXPOSURE IN INSTALLMENT SALES
Allows your company to make sales on credit, without adding excessive risk to the company's balance sheet;
ADDITIONAL WARRANTY
Credit insurance protection can be used as an additional guarantee to support a financing program with more attractive rates;
CONSTANT EVALUATION AND GREATER SECURITY
Insurance companies assess risks by analyzing credit information, company financial data and punctuality of payments in the market in which they operate. It is the insurance company that suffers the loss if the credit recommendation is incorrect.