Selling goods on credit is risky
An outstanding receivable from a buyer jeopardises the company’s financial position and cash flow.
Solvency problems or delays in payment
Realised credit losses have a material impact on the company’s operations.
Additional expenses
The use of alternative resources leads to additional expenses, such as additional interest.
Changing market conditions
A recession or changes in the industry may increase the risk of delays in payment.
Principal activities take a backseat
Dealing with solvency problems consumes resources and takes focus away from the principal business.
Potential fraud
Insufficient background screening of the buyer’s financial situation increases the seller’s credit risks.
Why is it important to take out insurance?
Valuable tool for entrepreneurs
It ensures that financial commitments are honoured, even in adverse circumstances.
Mitigating political instability
Fluctuating exchange rates, changes in tax policies or restrictions on foreign investment affect the way companies do business.
Finding new markets
With credit insurance, your business can be more confident about expanding into new markets.
Greater competitive advantage
Insured businesses can provide flexible payment terms for their buyers.
Partners
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“Credit insurance acts as a safety net in difficult times.”
Eeva Arnover
Insurance Broker