Credit insurance, the solution to protect yourself from unpaid invoices !
For a company, the consequences of’one or more unpaid invoices can quickly be disastrous. There is, indeed, enough to jeopardize the health and the financial stability of the company. However, in order to avoid this kind of situation, there is an efficient solution: the credit insurance’credit insurance.
What does it allow and how does it work? These are the subjects that will be discussed in this article.
What is credit insurance? ?
In order to understand why business credit insurance is an ideal solution for a company, it is necessary to know its different fields of application’action. It s’The company simply acts as an agent’a method of protection that consists of insuring, through a specialized credit insurer, the receivables that a company has on its customers. Is it really useful ? The question has the merit to be answered’be asked. But it is important to know that unpaid invoices can have drastic consequences on the financial health of a company’a company.
In order to secure its customer position, and to allow its company a profitable development, to turn to the’Credit insurance seems to be a very interesting solution. The main services offered by the credit insurance are’credit insurance under the prevention of the risk of loss’This is done regardless of the legal status of the customer, i.e. the claim must be reported to the credit insurance company’compensation for unpaid invoices.
The services offered by the’credit insurance
Debt collection can sometimes be a long and arduous process for companies. C’In any case, this is what the insurance company does’You can read on enterprise-and-company.en. Some of the services offered by the’Credit insurance can help you to’Avoidance of unpaid bills’to get there.
Indeed, the prevention of the risk of loss is one of the most important issues’unpaid is the’one of the first services provided by the insurance company’Credit insurance. Your company has interesting prospects, but you hesitate to start a commercial relationship ? The specialized company allows you to inform you, but also to select your new customers. For this purpose, the financial situation of the companies with which you are about to do business is evaluated daily.
The logical continuation of this service is the monitoring of the customer account.
Indeed, afterwards, the company of’Credit insurance monitors the financial situation of your company’s customers. This allows to gain serenity, and to be more confident’Establishing healthy and stable commercial relationships. However, in spite of all the precautions taken, it is possible that the company will not be able to pay its debts’The services offered by the company must face a default of payment.
The claim must therefore be reported to the insurance company’insurer. Under certain conditions, the company can also be used to monitor your customers’In the extreme case where the insurance company will be able to take over the entire management of the company’s unpaid debts, the company will be unable to pay’company. Several solutions can be implemented in order to achieve debt recovery. In the extreme case where the collection is not possible, the insurance will be able to take care of the entire amount’The claim must therefore be reported to the company’The insurer will be able to compensate the debtor’of course according to the terms of the contract that has been signed. This is done regardless of the legal situation of the customer in the company’origin of the unpaid invoice.
As a general rule, this indemnification takes place approximately five months after the date of submission of the file to the litigation department. The level of’compensation is for a’The insurer will be able to compensate approximately 90% of the amount of the invoice before tax. You can find more information in this article.
What are the advantages of this insurance?
You’As you have understood, there are a lot of advantages to use this type of services. Indeed, the defaults of payment are at the heart of the problem’origin of’s failure’company out of four in Europe. In exchange of’At an affordable cost, it is possible to protect your company from the risks related to bad payers. Subscribing to this type of contract allows you to develop your activity by accepting new customers with complete peace of mind. It is also possible to preserve your commercial relations by entrusting the steps related to the collection to a specialized company.
This way, you keep your precious time to develop your business as serenely as possible.