What does credit insurance do?
Credit insurance supports organisations in their debtor management and provides cover in case of non-paying business customers. An important part of credit insurance is a preventive test, in which a (new) customer relationship (debtor) is assessed for creditworthiness. This tells the organisation whether it can do business with the customer responsibly. And should things go wrong, the insurer will pay out 90%.
What does a credit insurer base its creditworthiness decisions on?
Credit insurers base their - global - creditworthiness decisions on available financial information from public sources, their own analyses and payment experiences. In addition, credit insurers base their decisions on industry trends and are in direct contact with the financial managers within companies where they have a higher risk. This is monitored daily - worldwide. The better and more up-to-date the insurer is informed, the better its advice and willingness to provide cover.
What can you do if a credit insurer does not issue cover on your business?
In these cases, Xolv's specialists come around the corner. We know better than anyone what parameters credit insurers use to determine their coverage policy on your business. So we can quickly identify what is needed to obtain or restore cover.
We also organise regular meetings where we invite a senior credit analyst from the credit insurer to discuss - directly with our client's CFO - the latest figures. A major advantage is that there is then no noise on the line. Figures are discussed and explained at board level and this information (often combined with forecasts and projections) gives the analyst an excellent picture of how the company is doing and what the policy is.
It undeniably leads to a better understanding that makes the so-called risk appetite can increase, which is lucrative for all parties. The insurer gets the desired information first-hand, and because of the improved coverage policy, our relations' suppliers often get a higher limit. This approach has already resulted in many increased coverages, from which our relations have benefited.
Entrepreneurship is about facing challenges, seizing opportunities and growing is a common and logical ambition. By letting Xolv support you, you can further realise your growth ambitions responsibly. This allows you to do what you do best as an entrepreneur. And let us be good at supporting you in this!
Want to know how you can hedge credit risks (better) or what solutions are available to you? Then contact us at info@xolv.nl or 073 - 820 02 95. Our specialists will be happy to assist you.
