Credit insurance – because clients cannot always pay their bills!
Credit insurance is an efficient way of protecting yourself against losses on debtors. Our credit insurance creates value for you and your company. In addition it gives you an overview of the credit risk on your debtors.
What is credit insurance
A credit insurance cover protects you from losses on outstanding amounts from clients, who goes bankrupt or for some other reason cannot pay their debts to you. The insurance is also called a debtor insurance.
Where do you use credit insurance?
Credit insurance is especially aimed at corporate clients — large as well as small. It helps to protect your liquidity and increase your creditworthiness. Furthermore it helps you to target profitable clients. You can read more about our credit insurance product Monitor90, which protects up to 90% of your loss.
Why use credit insurance?
Many companies think they know their clients well. Maybe they have traded with the same clients for years and feel comfortable with the relationship. Experience, however, shows that 80% of all losses comes from clients, who have traded with the company for many years. Therefore, it is important that you check up on their credit worthiness — even if you think that you know them.
Secure one of your most important assets
Receivables are one of your company’s biggest assets and it is important that you insure yourself against losses on debtors.
Several factors influence the creditworthiness of your clients. For example, your clients may trade with clients from other countries, where the market conditions are less positive, and where your client’s clients go bankrupt or cannot pay their debts. This will at first influence your clients, but it may easily impact your business as well, as it may result in a negative financial development for your client. Consequently, his creditworthiness and his ability to pay will deteriorate.
With a credit insurance cover you protect your company from losses on debtors. Additionally, you will have a number of advantages, which can give you peace of mind in your daily business. This among others include 24-hour online access to our self-service system, POMnet.
Read more about our products, Monitor90 and MonitorFlex.