Frequently asked questions | Coface PKZ insurance Inc.

Frequently asked questions

Why insure receivables? What are the benefits?

• Protection against financial loss due to non-payment,
• increase of your income and profitability,
• improvement of ability to raise loans of your company, and with this
• easier access to funding.

The bank namely acknowledges the benefits of insurance for the company:
o reduction of risk,
o increase of income and profitability,
o decrease of costs for examination of buyers,
o ensuring high level of risk management and consequently
o improvement of your creditworthiness.

Credit insurance enables you secure sale on the open account (deferred payment) without additional security, which otherwise your buyers would have to provide.

Within the scope of credit insurance we offer to you also assistance in solving difficulties with protracted delays in payment (reminders, modes of collection etc.) and expert assistance (legal advices, information on particularities of individual sectors on various markets etc.).

What is included in the service of credit insurance?

The service of credit insurance covers the risk of non-payment by the buyers, to whom you are selling on the open account. At First Credit you insure receivables from the sale of goods and delivery of services in the country or abroad.

The insurance covers commercial risks, such as protracted delays in payment and cases of insolvency (bankruptcy, compulsory settlement), as well as non-commercial or political risks.

The credit insurance includes the assessment of creditworthiness of the buyers, and such assessment is followed by the decision on the level of insurance cover for individual buyer. Credit insurance includes also management of credits: permanent follow up of the buyer and adjustment of the appropriate level of the limit. In case of occurrence of insured event we pay out to you the indemnity.

What are your references and experiences?

The First Credit insures receivables in over 100 countries. The majority of Slovene exporters are among our clients – the insured.

Are we able to insure credits only against one buyer?

Every sale on the open account is connected with the risks, regardless to the creditworthiness of the buyer, therefore it is reasonable and the most secure to insure the whole sale, which you make on the open account. As a rule, higher scope of the insured turnover means also lover premium rate. At First Credit we mainly conclude insurance contracts with the insurance of the whole sale on the domestic as well as on the foreign market.

The insurance of individual buyer is possible only in the cases of individual (project) transactions, where the term of payment does not exceed 2 years.

What about new buyers, which are not yet included in the insurance contract?

The procedure is simple. You send to us data on the new (potential) buyers on the filled in Request for Limit or via e-application PKZ-Net. We will examine the creditworthiness of the buyer and inform you about the potential level of insurance cover limit as soon as possible. This will surely be useful to you when negotiating terms of business with the new buyer. The reply on the limits is quick, for the smaller limits even immediate (discretionary approval of the limit for Slovene buyers up to the amount of 10.000 EUR).

The buyers are from EU, we know them for a long time and they pay regularly. Should we insure also such buyers?

By taking into account the particularities of your business, we may agree insurance only for the specific part of your sale.
The insurance of the whole sale is the most secure and at the end also the cheapest (as a rule, higher scope of the insured turnover means lover premium rate). During our work we often see the case of insolvency in all countries, and the creditworthiness of the buyer often changes quickly and many buyers in spite of the worst financial situation perform the policy of payment of debts in due term until the day of introduction of insolvency proceedings.

We are a cabinet-making company and we produce custom-made furniture. We export our products in France and Italy. In the recent period orders have significantly increased, therefore we would like to insure credits against buyers.

The payment term is 90 days. What should we do? How can we get additional insurance taking into account the fact, that our furniture is custom-made and we are not able to sell it to other buyer, if the initial buyer will be unable to pay for the ordered goods?

You are invited to fill in the questionnaire, on the basis of which we will prepare for you, as soon as possible, an offer for the insurance of export credits. For more information or advice please call us on the telephone number 01/200 58 10 or send us and e-mail on the address prodaja@coface.com We will be pleased to pay you a visit.

We may include in the scope of insurance the cover of risks before delivery. Such insurance covers production costs in case that due to insolvency procedure of the buyer goods may not be delivered.

The buyer is in delay with payment and does not respond to my calls. How are you able to help me?

It is important that you inform us about that in due time. In this way we will be able to help you at further measures to prevent and/or diminish the loss. With your approval we may send to the debtor a reminder, we may assist you in agreeing potential restructuring of the debtor’s obligations and we may advise you regarding other options how to settle open credits. In case that further recovery is required we will advise you, on the basis of our experience, in deciding about further recovery either with the help of attorney-at-law or through the recovery entity, such as our sister company Pro kolekt limited.

When do you pay the indemnity?

We pay the indemnity in 30 days from the receipt of indemnity claim with the complete documentation (link to the form). You may submit the indemnity claim after the occurrence of insured event, that is:
o on the day the insolvency procedure is introduced, if the bankruptcy procedure or compulsory settlement procedure was introduced against the buyer;
o at the expiration of the waiting period (when 6 months elapse from the due date of the oldest invoice) in case the debtor is in delay with the payment and is not in the insolvency procedure.

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

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

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.

The right information is worth more than a hundred news

I am giving my consent to the processing of personal data for the purposes of sending promotional material, notifications about new offers and sending invitations to events. I agree with the Statement on the Protection of Personal Data.

To prevent automated spam submissions leave this field empty.
CAPTCHA

This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

12 + 4 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.

Contact

Davčna ulica 1 (south entrance)
1000 Ljubljana
Slovenia

To prevent automated spam submissions leave this field empty.