Payment terms, apart from quality and price, tend to play an increasingly important role in making business attractive to clients. A trade credit or, in other words, deferred payment, is a big competitive advantage of those suppliers of products and services who offer it. At present, total commercial credits granted by suppliers exceed more than twofold the total amount of bank credits.
With all its positive effects for business, a deferred payment brings certain risks as well. Trade credits are usually granted without any collateral.. Insolvency of buyers, bad debts, overdues, commercial and political risks are the challenges faced by companies granting trade credits to their clients. It is exactly to address those challenges that trade credit insurance exists as a specialized insurance service for more than a century.
Trade credit insurance is a specialized insurance service that mitigates risks of non-payment of trade receivables. Credit insurance offered by Coface is a convenient tool for companies to manage their credit risks. Established in 1946, Coface came up with credit risk insurance offer that is now being extended through the network of Coface offices all over the world as well as through CreditAlliance partnership.
Coface Rus Insurance Company ZAO, Coface’s insurance subsidiary in Russia, offers trade credit insurance to:
Producers and trading companies Banks and factoring companies
Our credit insurance offer is an opportunity for our clients to have an insurance policy tailor-made to their needs. The policy is to help them:
Optimize their cash flows Save the time they spend to manage overdue receivables Reduce frequency, number and value of overdue accounts Focus on key operations Protect / clear up their balance sheets.
A credit insurance policy stands not only for a significant reduction of trade credit risks, but also for a competent assessment of credit risks throughout the entire client portfolio. Thus, apart from insurance cover as such, Coface provides its clients with efficient credit management support.
