Credit insurance is an effective tool to manage and deal with credit risk to which businesses are exposed when selling goods or provide services on credit either in Greece or abroad. So, it is a modern tool in the hands of enterprises that help them safeguard their interests against the risks of trade.
In credit insurance, in addition to the initial work of covering the risks our policyholder runs, we are also constantly monitoring every contract as each time there’s something different that needs our attention.
Credit insurance is as dynamic as the sales of each business. There is fluctuation of credit limits, extension of payment of part of buyer’s invoices, change of payment method and many more that one can analyze.
The most important thing is the coverage of our policyholder in case of damage. All the rules and clauses must comply in order for us to be ready at any time to satisfy the requirements of the policyholder, as liquidity in any business is one of the most important conditions for its survival.
Credit insurance covers the insured company against the risk of a client not paying their commercial debts. This may happen either because the client has gone bankrupt or because they have not paid their debts within the set deadlines.
Credit insurance covers short-term credit sales, which are sales of goods and services with a credit duration of 180 days usually, except from special cases when the credit duration may be even longer.
Praxis Insurance Brokers through a Credit insurance policy and in collaboration with companies that specialize in this sector, provides the policyholder the following services:
Organization of the business credit department and prevention or reduction in bad debts.
The ability to expand sales to a healthy clientele, based on reliable and always up-to-date commercial information.
Continuous monitoring of the financial situation of their buyers.
Compensation, if despite all of the above, a claim remains unpaid after the credit expires.
Recovery of a percentage or the total of the damage through coordinated legal actions.