You extend credit to your customers every day. And, because it’s a routine way of doing business, you may not be thinking about the risk you’re taking. But what happens when a customer defaults? The business closes? Even if you’ve never experienced a loss before, it only takes one to greatly affect your bottom line and the future of your business.
A credit insurance policy covers the unpaid credit balance from sales made to your customers. Whether you choose to protect your domestic or
export business, you are able to minimize the risks associated with a customer’s insolvency or delayed payment.
Trade credit insurance from Coface is a powerful tool that combines the information and protection you need to mitigate the risk of non-payment. And, if you do have a loss on an insured account, you will be indemnified
according to the terms of your policy.
Coface credit insurance solutions are designed to meet the needs of companies of all sizes, from small exporters to large multinationals. Our credit specialists will work closely with you on a solution that best meets your credit risk protection needs.
Clients use Cofanet, our online policy management tool, to request, change or cancel coverage.
Cofanet enables clients to identify its customers/buyers, see the total volume of guaranteed risks outstanding, report losses and monitor the indemnification of unpaid invoices, all in just a few seconds.The tool also offers debtor risk assessments, export functions and detailed research.
Uncertainty about the economy, the ongoing European debt crisis and increased exports by small and medium-sized American companies have sparked an interest in trade credit insurance as a tool for better managing and protecting accounts receivable. By requiring borrowers to obtain credit insurance, lenders can significantly increase their lending volume while dramatically reducing risk.
Increase lending capacity. Because credit insurance protects receivables against customer default or slow-pay, lenders can increase loan capacities without increasing portfolio risk.
Lend against international receivables. With credit insurance, international receivables become secured assets.
Overcome concentration challenges. Many lenders use Coface to help them alleviate domestic or foreign concentration in their portfolios, allowing them to increase loan amounts to qualified customers.
Ensure client retention. An unexpected bad debt loss could cripple your customer, violating loan covenants. Credit insurance can reduce this risk dramatically and help clients remain in business for a long time.
Include extended terms in the borrowing base. Typically, receivables from extended terms are an excluded asset. Credit insurance eases this problem.
Win more new business. In this competitive market, the lender who can advance against the largest pool of receivables often wins the new deal. Coface credit insurance can help you increase loan limits and reduce risk.