Credit Insurance Companies

Credit insurance is instrumental in minimising non payment risks caused by financial, economic or political uncertainties. Credit insurance is also a useful tool for managing financial performances, increasing sales and optimising balance sheet efficiency. Additionally, it is good for facilitating financing of receivables. Credit insurance is often said to be a broker driven business as brokers mainly help in creating market competition between insurers for better premium pricing and policy wordings for policy holders. Brokers also help policy holders to comply with the policy wordings in order to ensure smooth claiming processes, if any should occur. Credit insurance is invaluable in aiding successful national and international business to business trade. It will cover the risk of financial loss, which can occur when trade credit is offered by a business to its corporate customers, and thus, it provides a set period of credit after provision of products or services before payment is due. There is always a risk of non payment in these circumstances, either because the customer may be unwilling to pay or because of an unforeseen event, preventing successful completion of the sales.
In the field of credit insurance, Atradius has been the leader, offering credit insurance which can cover the complete range of risk of non payment inherent in trade credit sales, or just those that their clients choose to cover. Atradius’ flexible approach to underwriting allows each policy to be customised, from simple, no frills cover suitable for a small to medium sized enterprise, with limited resources, to a global scheme providing a consistent and comprehensive service to multinational corporations, with atradius account management and underwriting support in each of the client’s worldwide locations. The essential benefit of Atradius credit insurance is that it provides not only peace of mind to the client, who can be assured that their trade is protected, but also valuable market intelligence on the financial viability to the client’s customers or buyers, and in the case of buyers in foreign countries, on any trading risks peculiar to those countries.

Filed under: Uncategorized on February 3rd, 2012