FAQ

Commercial risk = the risk that your debtors will not pay you due to a deterioration in your financial situation (e.g. insufficient liquidity).

Political risk = all events that are considered force majeure for your debtors abroad and that prevent them from settling their invoices, i.e:

• political events e.g. war, revolution or uprising
• disasters such as earthquakes, volcanic eruptions or tidal waves
• currency scarcity delaying or preventing a transfer
• general moratorium decreed by the government in your debtor's country
• acts, decisions or omissions of public authorities deemed to be acts of government

Credit insurance aims to compensate an insured for the established financial losses incurred as a result of the declared (bankruptcy, judicial reorganisation, etc.) or suspected (inability to pay) insolvency of its debtor. In addition, the insurance can also be extended to cover the political risk, the pre-delivery risk, the supplier risk, etc.

Creditworthiness analysis of customers

• Prevention: Before supplying/supplying services to your customer, a creditworthiness check is carried out on the basis of both official data (annual accounts or trade information reports) and the credit insurer's own information (sector knowledge or information about the debtor's payment behaviour).
• Monitoring: during the term of the policy, the creditworthiness of your customers is monitored. You will be kept informed of all possible factors that may influence the creditworthiness of your customer.

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Accounts Receivable

Credit insurance offers a framework to optimally organise your debtor management (invoicing, follow-up payment of invoices, etc.).

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Debt collection

You can call on the amicable and legal collection service of the credit insurer if your invoices are not paid on time.

Compensation for losses

If your customer is in a state of declared or suspected insolvency and the payment of your invoices is not forthcoming, the credit insurer will pay you compensation for the losses incurred.

A credit limit is the amount per customer for which you are insured.

Most insurers offer different possibilities to set a limit per customer (limit decided by the credit insurer, self-assessment or blind coverage). Based on the profile of your customer portfolio, CRiON negotiates the most optimal conditions for you.

No, there are different types of credit insurance. CRiON supports you in finding the type that best suits your needs. Amongst others, the following credit insurance solutions exist:

• insurance of your entire customer portfolio: turnover policy
• insurance of a selection of customers: key account policy
• insurance of one particular customer or transaction: single buyer policy
• insurance of exceptional credit risks: excess loss policy

Within a classic credit insurance, the coverage starts as soon as the goods or services are delivered. However, when you carry out custom work for a customer, you are also exposed to risk before you deliver the product or complete the service. For example, you have already purchased materials or manufactured special goods before you can actually deliver a processed product. It may happen that the customer goes bankrupt during this period. This period between order confirmation and delivery or completion of the service is therefore called the pre-delivery risk or manufacturing risk. Covering the pre-delivery risk ensures that you receive compensation for the costs already incurred (purchase of raw materials, production costs, labour costs).

The cost of credit insurance depends on the risk profile of your company on the one hand (sector, turnover, customer spread, etc.) and the chosen credit insurance solution on the other hand (turnover policy, key account policy, single buyer policy, etc.).

In addition to an annual premium, there are also costs associated with the creditworthiness analysis of your customers by the insurer and the collection services they offer.

I want CRiON to contact me to work out a concrete offer.

Factoring is a simple form of financing short-term trade receivables.

When you choose factoring as short-term financing, you receive prompt payment for the invoices you have issued.

In addition to pre-financing, you can also rely on other services provided by the factoring company:

• receivables administration
• bear the risk of non-payment

The advantages of factoring are:

• improve your liquidity position
• off-balance sheet financing
• Immediate improvement of the ratios
• immediate improvement of the company balance sheet

A credit insurance contract offers you the following services:

• investigation of the creditworthiness of your debtors
• permanent evaluation of your customer portfolio
• collection
• payment of compensation in the event of a covered loss

Unlike factoring, the credit insurer does not take over your accounts receivable.

• Our standard training programs (Start2/Master2) are conducted in Dutch.
• Our online training programs (Kickstart2/Booster2) are conducted in English.
• Customized training programs are available in Dutch, English, and French.