Risk is inherent in business, although of course it should not become irresponsible. Especially in a sector such as mechanical engineering, companies can take big risks. These are one-off projects that require substantial investments. If payment is not forthcoming, that nice order could end up in liquidity problems. And perhaps even bankruptcy.
Customisation positive for corporate finance
An interesting solution is the combination of financing and credit insurance. That combination makes it possible to enter into individual contracts with security for all parties. This so-called single risk credit insurance is a tailor-made solution, which on the one hand has a positive effect on the financing of your business. On the other hand, it gives your financial partners the security they need and shows that you have thought of everything, making you a reliable partner.
Appropriate protection
The financier comes as a stakeholder on the customised policy, whose coverage is precisely tailored to the specifics of the project in question. It is therefore not traditional credit insurance, but appropriate protection on a contract-by-contract basis.
Advantages financing with single risk credit insurance
Single risk solutions arose from the market. There was an increasing demand to insure only a few debtors or even just one debtor, where previously it was common to cover the entire debtor portfolio. From Xolv, we welcome the fact that more and more insurers are offering these tailor-made solutions.
We list below the five biggest advantages of financing with single risk credit insurance.
1.Unconditional coverage
You are insured for the full duration of the contract. The premium is known in advance. This simplifies the entire financing of the contract.
2. Non-cancellable
Cover cannot be cancelled during the policy term. Nor can terms and conditions be changed to your detriment.
3. Also for international contracts
It does not matter whether you win a handsome order at home or across the border. In doing so, the insurance also provides cover against so-called political risks.
4. Covered against commercial and political risks
With our solution, you are covered for up to 36 months against the risk of non-payment, commercial and political risks and manufacturing and contract risks. In the event of a claim, the loss is paid immediately.
5. No red tape
This product is specially designed to cover an individual contract for the full term in one go. After starting the policy, administration is minimal.
Wondering if business financing with single risk credit insurance is for you? We are happy to think with you!
