The solutions to ensure receivables are numerous, and they differ from country to country… there is also a difference between domestic coverage from private insurers and export coverage from the government agency.
To use this instrument to protect your business in a correct and effective way it is recommended to consult a professional broker who advises in the day to day administration of the policy.
We offer our experience of combined more than 25 years in this special segment:
- Intensive analysis of needs and requirements of the prospect
- Work out a fitting policy arrangement
- Negotiations with the insurer regarding optimal coverage
- Support in achieving adequate credit limits and acceptance ratio
- Assistance with the implementation of a policy
- Training of the employees in charge of the day today handling of the policy
- Advise in day to day business, especially in the fulfillment of all obligations of the insurance policy
- Management of the prolongation of the contract or rearrangement of the cover concept
Credit insurance
Trade Credit Insurance brokerage is a very specialized service, and as the service is continuously upgrading differently in different countries there is a wide range of product variations, clauses and also obligations. Always depending on the individual company needs this applies among others to:
- Policy coverage
- Domestic, export / definition of insurable portfolio / single risk cover / short term, medium term
- Type of premium
- Turnover premium: on insured clients / on insured turnover
- On balance outstanding: from insured clients / from insured receivables
- On credit limits
- Fixed
- Franchises
- Self retention (10-20%)
- Each and every loss
- Threshold
- Annual aggregate
- manufacturing risk cover, seasonal credit limits, top up cover, run in- run off cover, …
Single risk coverage
Single risk/buyer project coverage in high-risk countries: cover of commercial, political and pre-shipment risk, the unfair calling of bonds as well as contract frustration cover.
For bigger single risk projects Delcreda follows a different approach for its client’s requests:
- Collecting Information: reports, financials and ‘story’
- Analysis: making the first evaluation if the potential buyers are insurable for the requested amounts => increases the probability of getting an offer
- Finding the fitting insurer(s): private and/or state-owned (ECA) insurers