Trade Credit Insurance is a credit risk management solution that safeguards the development of your business, in particular by protecting you against losses due to non-payment of invoices.
Trade credit insurance (TCI) is a solution for managing trade credit risk with a very simple aim: to help your business grow securely by protecting it against losses from unpaid invoices.
Your day-to-day business involves extending credit to your clients in your domestic and export market. But it’s a practice that lays you open to the risk of default or insolvency, which together account for 25% of corporate bankruptcies.
To avoid unpaid debts and help you manage receivables more effectively, trade credit insurance includes three complementary services:
- Business information (BI), designed to rate the financial solvency of your current and future clients in real time based on the economic and political context.
- Debt Collection of your outstanding invoices.
- Indemnification of receivables guaranteed by your credit insurance policy.
What commercial risks does Trade Credit Insurance cover?
Trade credit insurance is a powerful tool for controlling commercial risk. It covers:
• Extended payment defaults (late payments).
• Bad debts arising from customer insolvency.
• Political risk: non-payment resulting from political or climate-related events, currency restrictions, interruption of trade or expropriation.
How does a Trade Credit Insurance policy work?
With Coface, your credit insurance policy works simply and easily:
- You provide us with certain information about your company and clients.
- We assess the financial health of your customers so we can draw up credit limits and commercial terms to suit your particular needs.
- We monitor your clients around the clock and tailor the coverage accordingly for the entire term of the policy.
- In time, we can include your new clients in the policy as well as extending the coverage of existing customers.
- If your clients do not pay in a timely manner, our debt collection services ensure that the vast majority of your unpaid invoices are settled... anywhere in the world!
What type of Trade Credit Insurance should I choose?
Coface offers a comprehensive range of credit insurance solutions for every size of business (SMEs, very small companies, and multinational companies) and every type of industry or to suit your specific needs:
• EasyLiner: all-inclusive, 100% online credit insurance for SMEs and very small companies.
• TradeLiner: the simple, flexible and 100% custom-built solution for SMEs and mid-caps.
• GlobaLiner: bespoke credit insurance and dedicated teams supporting the growth of global companies.
• Single Risk: political risk and payment default insurance to cover your complex one-off or recurrent projects.
Why does my company (definitely) need Credit Insurance?
Taking out a trade credit insurance policy means you can:
- Avoid unpaid debts on a day-to-day basis while developing your business.
- Extend credit to your clients without worrying about unpaid debts in case of insolvency.
- Limit customer risk to a minimum: assess the solvency of your business partners in real time so you do not sell to bad payers and can avoid taking any risk depending on the economic circumstances.
- Recover your trade receivables without compromising relations with your client: our teams will take care of everything for you.
Be (re)insured if collection takes time or does not get results: you are compensated for the loss incurred on your guaranteed receivables.
5 (GOOD) REASONS FOR CHOOSING COFACE
With Coface solutions, a leading provider in risk management worldwide, you benefit from:
#1. 75 years of expertise recognised by 50,000 clients companies worldwide.
#2. Assistance provided by our risk experts in 46 countries and coverage solutions in around 200 markets.
#3. Qualified information and unique insights into 190 million companies, 185 countries and 13 industries all year long.
#4. Over 300 experts tasked with recovering your receivables across the world!
#5. Additional services to help foster your growth: business information, debt collection and business bonds.