Credit insurance

• Default risk and recovery costs are transferred to the insurance company.
• The uncertainty generated by customer cash flow is avoided in a threefold fashion:
  • Risk prevention
  • Default recovery management
  • Compensation for losses as a result of default
• The delinquency rate and losses lower, and the liquidity, solvency and cash-flow ratios improve.
• It provides an objective opinion of each customer, their solvency being kept under permanent watch.
• The company can concentrate on its work, saving time and increasing profitability.
• It allows for more favourable bank financing.

 

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