Credit Insurance:
Your Shield Against Receivable Defaults
Your Shield Against Receivable Defaults
Securing Your Receivables – Stability for Your Business
In the face of the challenges of a dynamic market and the growing awareness of the need for effective receivables management, Credit Insurance emerges as a critical factor for businesses looking to minimize their financial risks and secure their business relationships.
Credit Insurance protects against the financial risks of trade, enabling your company to manage credit risk while simultaneously strengthening your trade relationships.
At Breffka & Hehnke, we understand the importance of effective credit risk management for the long-term success of your business. With our expertise and deep understanding of the various aspects of Credit Insurance, we are committed to providing you with the best possible solution for your business.
Discover how we can help you minimize your financial risks and sustainably strengthen your business.
What is Credit Insurance?
In business transactions, especially in the B2B sector, it's common practice to offer customers payment terms ranging from 30 to 180 days. These credit periods granted to your customers can significantly tie up your liquidity. The longer the payment term, the higher the risk of receivable defaults.
Credit Insurance safeguards your business against such risks. It protects against unexpected losses from unpaid invoices, thereby significantly contributing to the financial stability of your business. This ensures that your liquidity is preserved and potential losses in profits are effectively mitigated.
What services does Credit Insurance offer?
Protection Against Default on Receivables: Safeguards against the financial loss that occurs when customers are unable to pay their invoices.
Liquidity Preservation: Helps businesses maintain their liquidity by minimizing the risk of unpaid receivables.
Creditworthiness Evaluation of Customers: Provides access to professional credit evaluations to reduce the risk of doing business with financially unstable customers.
Claims Settlement: In the event of a receivable default, the insurance ensures quick and straightforward claims settlement. We support you every step of the way.
Growth: Enables businesses to expand into new markets with greater security by covering the credit risk of new and existing customer contacts. Use our coverage to win new customers!
FAQs on Credit Insurance
It's ideal for businesses that deliver goods or provide services on credit and want to safeguard against the risk of receivable defaults.
If a customer fails to pay an invoice, Credit Insurance reimburses the insured company for the outstanding amount, according to the terms of the policy.
It typically covers risks such as debtor insolvency, payment default, and political risks that may lead to payment defaults.