What services does a credit insurer provide?
Analysing the creditworthiness of customers
- Prevention: Prior to signing a deal with a new customer, a creditworthiness check must be carried out based on official information (balance sheets, social security status, disputed bills of exchange) and the company’s own market information (knowledge of the sector or the company’s own payment experience with the debtor via other insured parties).
- Monitoring: All customers are monitored discreetly during the period of the policy. The policyholder is then kept up to date about all the possible factors that may affect the customer’s creditworthiness.
Monitoring dubious debtors
- Collecting the debt: Once a contractually defined period has elapsed, all policyholders may call on the credit insurer to have their unpaid debt collected.
- All possible legal avenues have been exhausted to make the debtor pay.
- Proven insolvency: Losses are reimbursed within the contractually agreed waiting period.
- Suspected insolvency: Payment after the expiration of the contractually agreed waiting period, without official insolvency being declared.