There are ground rules for that. Credit insurers apply a deadline for assignment of outstanding invoices. This is often 90 or 120 days after the due date of the invoice, for example. If this deadline is not met, the insurer may refuse coverage. It is therefore crucial that debtor management is tightly organised. Think about sending timely reminders and dunning letters, properly recording communication with the customer and consistently monitoring agreed deadlines.
Unknown possibility
What many companies do NOT know is that in certain cases, deferral of debt collection is possible. If it is clear why a customer is temporarily unable to pay, for instance due to an administrative error, a seasonal dip or a delay in its own cash flow, the insurer can agree to a longer payment period under certain conditions. This postponement offers room to maintain a good relationship with the customer, without immediately moving to a formal collection transfer. A condition is that there is sufficient transparency: the situation must be reported to the insurer on time and a deadline of the expected payment must be communicated. So you need to check carefully what deadlines the credit insurer uses and set up internal processes so that deadlines are not missed. And when in doubt or signals of payment problems, contact Xolv immediately. Sometimes a solution can be found that preserves both the coverage and the customer relationship.
Bespoke
Credit insurers are strict on meeting the collection transfer deadline, but that does not mean that customisation is not possible. Engaging in timely discussions and making use of the deferral option will prevent unnecessary claims and maintain a better grip on customer relationships.