When trading internationally or domestically, one bad debtor that isn’t covered can put a lot of strain on your business because the loss has to be recovered step by step through future deals. Despite your credit-management procedures and knowledge of your clients, there’s always a risk that your client won’t pay its invoice. That’s why Credendo’s there to take over risks that could endanger your financial health, with its ability to grant cover in more than 150 countries worldwide.
Credendo provides customised solutions related to domestic and international trade transactions and investments abroad. Credendo protects companies against credit and political risks and facilitates the financing of such transactions.
Credendo can cover the risk of non-payment of invoices by offering the following solutions:
Trade credit insurance: One solution is to conclude a comprehensive policy. This insurance policy can protect you against the risk of non-payment of receivables from domestic and foreign customers due to their inability or unwillingness to pay (commercial risk) or to country risks (political risk) on the part of the foreign buyer.
Excess of Loss: An alternative solution is to opt for hands-off cover, namely an Excess-of-Loss policy. As the insured, you’ll retain full autonomy in your decision to grant credit and in your recovery actions. Your day-to-day workload won’t have to change. You can choose the parameters of your Excess-of-Loss policy, which is a distinct advantage compared to conventional credit insurance. The parameters are: the sum insured (liability of the insurer), which is the risk transferred to the insurer, the deductible (franchise), which is the risk retained by the insured, and the premium, which is the remuneration of the sum insured and is fixed by the insurer.