Credit insurance without cover? How then? 

Published on 08/05/2023

Finding the right balance between accepting new customers and mitigating financial risks is a challenge. New clients are obviously essential for the growth of your business. But how do you know if a company is reliable enough to do business with? And how do your receivables management and sales departments work together optimally? Accepting and monitoring your customers is an essential part of your operations because:

  • you limit the risks 
  • you spend less time on debtor management
  • you have continuous insight into the payment behaviour of your (potential) customers
  • you see the amount you can safely do business up to 
  • you discover commercial opportunities 

Spot the differences 

You can have creditworthiness established by both trade information agencies and credit insurers. But how do you choose wisely? The main difference is that a credit insurer puts its wallet next to the report. Because if a buyer fails to pay or goes bankrupt, the credit insurer will have to pay compensation. Information agencies carefully establish creditworthiness, often through an automated process, but are not in the risk. For instance, we recently had an example of a company in suspension of payments where a trade information bureau still gave a positive opinion of €1.5 million, even though the credit insurers had withdrawn coverage several months before.  

But do I also need to take out a policy with the credit insurer? 

You don't have to, it is now possible to order reports from a credit insurer without taking out a policy. The report with a limit what you get is assessed and prepared in exactly the same way as for insured customers. We also call this credit insurance without cover. 

Want to know more? Get in touch.

Xolv BV is part of of the Ecclesia Group

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Xolv BV is part of of the Ecclesia Group

Xolv is a partner in the international network ICBA

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