Coface Trade Credit Insurance
Get a Free Quote
Get a Free Quote
Every time you offer credit to your customers, your company is exposed to the risk of non-payment.
Discover how Coface Trade Credit Insurance enables you to trade with confidence.
Let Coface give you peace of mind, knowing that your business is
protected against bad debts, insolvency or protracted default of your customers and political risk.
/ What is Trade Credit Insurance
- A credit risk management solution safeguards businesses against unpaid invoices. Generally, trade credit insurers may cover up to 90% of the debt.
- Trade credit is a risk. It is cash that is not collected on the date of invoicing. Trade credit insurance helps you to manage your credit risk.
- Trade credit insurance promotes business growth, secures profits and can improve your banking relationship and access to finance.
Bad Debts
Trade credit insurance protects your business from bad debts. If your business incurs a bad debt, it means one of your customers hasn’t paid for the service or product provided, and you’re unable to collect the money.
Bad debt insurance protects your business from unpaid invoices and customer default. Credit insurance prevents disruption to cash flow.
Late Payment
Late payments occur when a customer fails to pay on as per the agreed time period. Late payments eventually can lead to
non-payments, having a severe impact on business.
non-payments, having a severe impact on business.
Political Risk
Risk associated with political factors such as political violence, wars, disaster can lead to prevention of payment of a contract.
In case of such political adversities, Political Risk Insurance works as an insurance policy and protects businesses against non-payment.
/ How does Trade Credit Insurance work
- POLICY INCEPTION : Coface Risk Experts will analyze the creditworthiness and financial stability of your insurable customers and assign them a specific credit limit.
- CREDIT RISK MANAGEMENT : It is Coface's responsibility to proactively monitor your customers throughout the year to ensure their continued creditworthiness. We keep you informed of all your emerging market risks.
- CLAIM PAYMENT : If an unforeseeable loss should occur, you would file a claim with supporting documentation. Coface would pay you the claim benefit up to 90%.
Benefits of Trade Credit Insurance:
Cash Flow Relief
When your customer becomes insolvent and fails to pay bills on time, trade credit insurance protects your cash flow so you continue to operate your business smoothly.
Early Warning
Trade credit insurance policy helps in identifying early warning signals of potential payment difficulties. When signs indicate your customer is experiencing financial difficulty, Coface will notify you on the increased risk and establishes an action plan to mitigate and avoid loss.
Access to New Markets
Our international trade credit can help your company grow. We work with a large network of trade credit brokers and financial institutions all around the world. When you plan to access new markets, we analyze the credit risks for you, provide information on your clients and minimize trade risk.
Efficient Debt Collection
Credit insurance companies have an efficient team of debt collectors, experienced in collecting debt in most of the markets. They have a proper understanding of local laws and a working knowledge to collect debts anytime anywhere, thereby assuring for a stress-free debt recovery.
Increase in Revenue
With trade credit insurance policy, you can grow your business and generate more revenue and profit since the risk of non-payment (default) is removed from your sales invoices.
Better Decision Making
Coface, Trade credit insurance company, helps you make quicker and better decisions. It improves efficiency and brings profitability for your business. Therefore instead of chasing on bad debts you can focus on growing your business.
There are various credit insurance policies to suit all budgets. Depending on the needs of the company, there are different types of trade credit insurance solutions.The credit insurance policy will be completely different for a large multinational company compared to that of a SME.
Our review and quotation process is in two parts:
We look at the way you trade and your business, to come up with a policy rate and terms that work for your business.
The other is to look at who you are trading with and what the financial strength of those companies is, to see what level of credit limit coverage we can provide.
Our digital tools to manage your portfolio – Cofanet and Cofamove:
- Obtain credit limits and credit reports for your business
- Check company credit scores
- Access order history
- Request debt collection and recovery
- Follow debt collection progress
AA-
Rated by Fitch and
A2 by Moody's195
Countries Covered
50,000+
Trade Credit Insurance
Clients Worldwide540Bn EUR
Trade Receivables
Insured Worldwide