We can’t predict the future, but we can mitigate the risk.Coface Credit Insurance covers you against bad debt, late payments, political risk, pre-shipment risks and more. Protection for your cash flow and future revenue will ensure that if the worst happens, you still get paid.
What is credit insurance?Credit insurance is a type of business insurance which covers losses arising from non-payment for goods or services.
It means that should the worst happen - a customer’s insolvency or protracted default - the policyholder can protect their bottom line and maintain their cashflow
How much does credit insurance cost?There are credit insurance policies to suit all budgets. Premiums are generally set according to turnover and business profile – including industry sector, number of customers and previous loss history.
After an assessment, the credit insurer will provide a quote that sets out price and policy terms, including amount of cover, level of self-retention (typically 10%), and whether there’s a deductible or minimum threshold for claims.
WHO IS CREDIT INSURANCE FOR?In principle, credit insurance is suitable for any company that provides credit to another company. Whether you trade in goods or services and in whatever sector you work in, Coface credit insurance policies are taken out specifically for your situation. Coface not only offers credit insurance for the United Kingdom and Ireland, but also companies that operate internationally can take out credit insurance with Coface. This means you have fewer barriers to growing your business internationally.
Is a credit insurance policy different from other types of insurance?With most types of business insurance, such as employers’ liability or buildings insurance policies, the provider has little contact with their policyholder between renewal times, unless they receive a claim.
By contrast, the best credit insurers actively support a company’s trading throughout the year and provide an early warning system about changes in the risk status of customers so it can avoid foreseeable losses.
To be effective, credit insurance should be a partnership between both parties. The policyholder tells the insurer about customers’ payment behaviour and notifies overdue payments. The insurer feeds this customer information into its database alongside data from other sources, such as financial statements and public records.
Meanwhile, the insurer gives the policyholder access to its wealth of business intelligence and expertise in credit risk. Working together, they can determine the level of credit risk, adjust the level of cover and agree credit limits,assess the financial health of customers and focus on the most profitable.
The benefits of credit insuranceWhile credit insurance can fit comfortably within any credit management strategy, it compares favourably with alternatives on grounds of:
- There’s no need to sacrifice a portion of the invoice amount so the company can maintain a healthy profit margin.
- Credit insurance generally includes access to complementary credit management services including business information and collections.
Peace of mind
- A contract of insurance.
- Credit insurers are regulated by the Financial Conduct Authority in the UK.
- Credit insurers are legally required to have reserves to pay claims.
- Protect bottom line when trading in a volatile market or uncertain economic period
Level of cover
- Cover is not limited to a single transaction as with letters of credit.
- Releases working capital to invest in other areas of the business or pre-order stock.
- Possible to arrange policy with automatic discretionary coverage up to a certain amount or percentage of sales.
- Credit risk information helps steer company towards profitable customers, sectors and overseas markets.
- The confidence to offer competitive terms and pursue business goals.
- Credit insured businesses are more attractive to banks and other investors which should enable them to secure finance on better terms
Looking for effective ways to manage risk and streamline processes?
Coface offers a full suite of services to help you create a safety net against risk before, during and after trade. Saving you time, money and hassle.
1. Check before you tradeGo beyond the standard checks with Coface Information Services. With instant commercial scores, real-time analysis, and supply chain alerts, you can minimise risk, protect supply chains and identify new opportunities.
- Instant, real-time results
- 24 hour global risk analysis
- Data adjusted by sector and country
2. Get protectedCoface credit insurance covers you against bad debt, late payments, political risk, natural disaster, pre-shipment risks and more. So if the worst happens, you still get paid.
- One of the world’s leading credit insurance companies
- Over 4,000 experts operating across 100 countries
- Unique, insightful and targeted data-driven intelligence
3. Collect what’s owedRecover late payments and limit losses with our efficient, stress free debt recovery. We handle everything from initial contact to all follow-ups and collections, providing a single point of contact regardless of the debtor country.
- Action within 24 hours
- Debt collection offices in 48 countries
- Access to local law enforcement
Our EasyLiner online policy has been specifically designed for SME's to provide protection against late payment and insolvency with a minimum of fuss.
TradeLiner - our new credit insurance product for mid to large businesses has been developed to make it easier for companies to obtain credit insurance cover.
GlobaLiner is designed for multinational companies operating across the globe. Access to credit-expertise and market knowledge from a worldwide leader in credit insurance. Flexibility in risk management and homogeneity of contract with unique wording.
A unique structure for multinational groups and a market leader in multinational credit insurance. Via an integrated team, we offer you an international network, dedicated teams in 7 regions focused on the management of large programmes, a set of dashboard to acutely control customer risk, a centralised system for negotation and consistent contract agreements that allow to increase efficiency.