Even staying alert, no employer is under cover of an unpaid bill. In this case, and due to insufficient treasury, the consequences may be heavy. However, there is an effective means of preventing this risk: credit insurance.

Every company issues invoices, and it is capital, for its permanence, to be paid, under penalty of quickly putting the key under the door. Unfortunately, there is no guarantee in this domain: even a reliable and solvent a priori client can, overnight, be missing. It is enough to be the victim of a recalcitrant debtor to not be able to satisfy his debts more. The consequences can be heavy, especially if the company has a limited treasury, which is the case of many TPE: we consider that the unpaid are, in Europe, at the beginning of a business failure on four.
There is nevertheless a means of preventing against this risk: to subscribe a credit insurance. This contract is intended to cover the company in case of non-payment of its debtors. Particularly protects against a possibility of chain failure.

To the insurer the annoying steps
Credit insurance offers several advantages: first, it allows judging the solidity of the company’s clients. In fact, before granting its guarantee on a given file, the insurer is informed of the financial situation and the background of the potential clients concerned. Your decision to insure or not such a company is therefore a good indicator of the level of risk incurred. Then, free to the insured to propose to the client denied by the insurer a payment many times, if he is willing to assume this risk.
Another advantage of credit insurance: in case of non-payment, the insurer is responsible for arranging the pre-litigation and contentious coverage of the insured loans. Free the entrepreneur from a series of annoying steps. Finally, the credit insurer indemnifies the guaranteed credit if, at the end of a specific grace period, it fails to recover the credits due or does not recover only a part.

Securing loans stopped close to foreign clients
Credit insurance has been reserved a lot of time for large companies. Afterwards, the companies developed offers directed to cover the needs of all companies, whatever their size and status. In certain cases, they even insure detained loans close to foreign clients.
The cost of a credit insurance depends on the insured risk. It depends on several variables: the sector of activity concerned, the profile of the clientele, the payment terms granted, the volume of business to be covered, etc.
Before subscribing, one must study well the litter of the guarantees offered. In effect, the insurers do not always guarantee the full coverage of the credits owed. In certain cases, there may also be a franchise (at the expense of the insured, then). The question of repayment periods is also important: they are often quite long. What has a direct impact on the amount of the treasury that must be provisioned waiting to be compensated.