Trade Credit Insurance
What is trade credit insurance?
Research suggests that 90% of companies have experienced business failure among their clients. Businesses protect their tangible assets such as property and plant, but often neglect to cover their receivables which can represent 40% of their current assets.
Credit insurance provides your business with protection against the failure of a customer to pay their trade credit debts.
This can arise as a result of your customer becoming insolvent or because your customer fails to pay within the agreed credit period. These risks are referred to as 'commercial risks'. The protection covers standard goods or services sold and delivered, but can be tailored to cover many other risks such as work in progress and binding contracts.
Trade Credit Insurance in Russia
In Russia Euler Hermes provides trade credit insurance through its partner, the insurance company ROSNO. The conditions of insurance offered by ROSNO comply with international standards of trade credit insurance, requirements of the Russian legislation and satisfy the individual and specific needs of each client. Each case is analyzed separately, thus allowing to find the best solution for the protection of your business against the possibly fatal consequences of clients’ insolvency.
Value of insurance protection:
- Objective assessment of the current client portfolio and reduction of the risk of financial losses through the professional opinion of credit management experts;
- Defining opportunities to do business with new buyers and the size of the credit limit for new and existing counterparties;
- Expansion of the regions you sell in and sales levels;
- Enhancement of your credit rating with banks, creditor companies, rating agencies, investors and shareholders;
- Protection of business in the event of protracted default or bankruptcy of a buyer (debtor) by means of indemnification by the Insurer (in Russia: JSC ROSNO).
Русский
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