Have you not insured your receivables yet? | Coface PKZ insurance Inc.

Have you not insured your receivables yet?

If you are not using any tools to achieve your business targets faster, protect yourself against defaulted obligors and improve your competitiveness, now is the time to position them on your strategy map. Why?

The story is simple: you were able to close a deal, shook hands with the customer who is giving you hope for a good portion of your turnover, you have supplied the agreed quantity of goods or executed the promised services; you then finally issued the invoice for it. Typically for modern business operations, your invoice states a due date between 30 and 60 or even more days. Despite your assumption that your customer is a trustworthy company (because you otherwise would not be closing a deal with them), there is always a risk that you will not receive your payment.

A lack of payment discipline could be fatal for your business

Similar to most of the undertakings that do business both in the domestic and international markets, you cannot afford to face financial losses due to unpaid invoices. The production/supply of goods or delivered services is associated with costs that you have to or already have settled. Apart from that, a large part of your current business certainly depends on the amount you charged. Your customer’s liability represent an important part of the assets you need in order to do business, hire bank loans for further investments and avoid unpleasant consequences of potential losses.

Can you really afford losing money?

Have you ever considered that the damage your business may suffer due to your customer’s lack of payment discipline, bankruptcy, or any other factor you have no influence on, can be equal if not even greater than the damage caused by a hypothetical fire in your office building? Even the customers you have worked with for a long time and built a trusted relationship with could easily find themselves in a situation where they cannot settle even a relatively small invoice. Not even excellent business relationships can help you in such a case. Just like you insure your office building or other property for loss events, it is reasonable to consider the possibility of insuring your receivables.

Why should you insure your receivables?

Receivables insurance is a tool that offers companies several different benefits and enables them to do better business in domestic and international markets. The main purpose of receivables insurance is to protect you against the risks of default payments on open accounts (in other words, via deferred payment). This way, you can ensure cash flow and economic security of your business operations, in addition to other benefits that are important for a responsible company management.

Risk management brings better commercial conditions

The insurance contract you sign with SID - First Credit Insurance Company, after we’ve carefully prepared an offer for you, provides you with a compensation for damage arising from unsettled invoices: you are entitled to indemnity should your customers, for any reason, be unable to settle their outstanding accounts.

This makes you gain certain benefits that even leading companies have trouble accessing:

  • planning your cash flow will be a calm and easy task because you can be sure you will receive your payment,
  • improve your company’s liquidity,
  • increase your chances to receive bank loans,
  • avoid painful enforcements,
  • it will be easier to focus on your vision development and its realization,
  • improve your competitiveness significantly.

Conducting business on open accounts is a strong competitive advantage in certain markets and in certain industries, both in Slovenia and abroad. If your customer has the option to decide between several offerors of comparable products or services, they will most likely be inclined to do business with the one offering deferred payment. Insuring your receivables makes the decision to trade on open accounts much easier, as you can protect yourself against risks that constantly come with seemingly safe business operations.

Receivables insurance allows a faster achievement of your business targets

In addition to ensuring a paid damage compensation, SID - First Credit Insurance Company offers you the following services:

  • professional assistance relating to difficulties in obtaining receivables,
  • information pertaining to credit standings and
  • credit ratings of existing and potential new customers.

You can allow yourself to be more ambitious when entering new markets and can acquire new customers faster if your company is protected from risks you may encounter due to your customer’s lack of financial capacity. This allows you to achieve your business targets substantially faster.

How to obtain a favourable receivables insurance which will help you do better business?

You are only a few steps away from a favourable and safe receivables insurance. The first step is to complete the questionnaire by which you provide SID - First Credit Insurance Company with information we need in order to prepare a customized offer for your business. You will receive an offer taking note of the nature of your business; you can then conclude an annual insurance contract with us.

Perform better with reliable risk management!

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Frequently asked questions

  • If we have credit insurance, does this help us in getting bank loan?

    Yes, the insurance policy improves the creditworthiness of the insured, since banks and business partners know, that you have your credits insured. In addition you are also able to transfer your rights from the insurance policy also to bank or other financial institution (assignment). With this you partly or entirely substitute other forms of collateral, which the banks and other financial institutions usually request, and as a consequence you are entitled to the better financing conditions.

  • Do you also cover the costs of recovery against the debtor?

    Yes we do, in the same proportion, as we have covered the loss.

Contact

Davčna ulica 1 (south entrance)
1000 Ljubljana
Slovenia

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