Credit insurance

Services
It is a tool that allows mitigating risks when selling products or services on credit (domestic andb international), under the following risks

Commercial Risk

Insolvency Law.
Bankruptcy or any similar bankruptcy proceeding according to the Law of the client’s country.

Insolvency by Fact
It occurs when the client has not paid in full its debt at the maturity of its obligation.

Political Risk

Embargo, non-transfer of foreign currency, uprising, general moratorium decreed by authorities of the importing country, act or decision that makes payment of the the importer’s obligation impossible.

A good credit policy is not a restrictive one, but one that helps the commercial area to sell as much as possible with the lowest risk for the company.

Reflections and Facts, regarding the Scope of the Insurance Coverage

  1. Accounts Receivable represent on average 40% of the assets (A company covers assets against eventual risks, not knowing that the probability of non-payment risks is higher than, for example, than the risk of fire )
  2. Premium 100% tax deductible (Income Tax)
  3. Identifies reliable clients through constant study and monitoring (+credit to solvent clients)
  4. Statistics, measurement of buyers’solvency.
  5. Longer credit terms of up to 120 days could be offered.
  6. Allows you to reduce conflicts by delegating the collection management of your unpaid receivables (it is deifficult to pressure a very good customer for unpaid receivables, it is preferable to rely on a third party with experience and international presence.
  1. Maximize efforts to build loyalty into the commercial relationship with existing customers and speeds up the development of potential customers.
  2. Dispersion of your risk to develop potential clients.
  3. Facilitates the opening of new markets (exporting to new countries), increasing market penetration rate.
  4. Access to bank financing without the need to contract new liabilities, as it is a guarantee for banking and financial entities (endorsable to the Bank or implementation of factoring).
  5. Optimizes management costs by concentrating commercial information (research), management of unpaid credits, legal expenses for recovery and collections, as well as the protection of credits.

Comprehensive Consulting

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