By taking out a Credit Insurance policy, your company guarantees more protection against claims and customer defaults during your business negotiations.
However, the solution encompasses many other fundamental strategies, such as a detailed credit analysis of each consumer and more efficient risk management to avoid predictable losses in your market.
And it is precisely to show how this works in practice that we have prepared this post with tips and useful information on the subject.
Shall we check? So, happy reading!
After all, why invest in Credit Insurance?
In times of crisis and imminent financial risks in various sectors, Credit Insurance has become increasingly seen as an intelligent and strategic solution to protect against customer default.
In other words, the policy guarantees that your company will receive installment sales in the event of delay or non-payment by your audience.
And this includes the international market, that is, default and other claims in foreign trade operations .
And what are the advantages of a detailed credit analysis?
As well highlighted, far beyond the guarantees added by a Credit Insurance, the specialized insurance companies still deliver other strategic solutions to their management, such as well-accurate credit analyses.
In practice, this significantly enriches your planning against foreseeable risks and losses and, consequently, improves your decision making.
Want to know better how this is possible? So, here are three essential factors that are added to your risk management when hiring an insurance company specializing in Credit Insurance:
Database
Credit insurers have databases with up-to-date information about companies, as well as economic information from the countries that purchase their products and/or services.
That is, even before closing a deal with a potential client, the insurance company already carries out a detailed analysis of this negotiation and measures the possible risks inherent to the operation and the precautions to be taken.
Credit limit
Insurers are able to calculate and recommend the ideal credit limit for each buyer, in addition to offering advice on collection services.
With this, your company starts to grant credit in a much more strategic and personalized way, reducing risks and avoiding problems such as default and defaults.
Warranties
Insurers assess risks through analysis of credit information, company financial data and timely payments in the market where it operates. It is the insurance company that suffers the loss if the credit recommendation is wrong.
In summary, these are some essential tips and information about credit insurance and how a strategic analysis from a specialized insurance company can add to your risk management and avoid predictable losses in your negotiations.
And if you want to know more and protect your business from these risks, talk to a EasyCashLoan specialist right now and check out the solutions and policies of the best credit insurer in the country.
About MDS
. MDS is a multinational insurance and reinsurance brokerage, risk consulting and benefits management group It is the market leader in Portugal, among the largest in Brazil and also present in Angola, Mozambique and Spain. Worldwide, the company operates through Brokerslink – a company founded by the group that manages a network of brokers present in more than 120 countries, totaling around 25,000 insurance professionals. In reinsurance, the organization operates in Brazil, Portugal and Africa under the MDS RE brand. RCG - Risk Consulting Group is the reference company in risk analysis, loss control, business continuity planning and Enterprise Risk Management. Through HighDome, a Protected Cell Company (PCC), the group offers alternative risk transfer solutions to the traditional insurance market. Finally, while the recent acquisitions of Process, Tovese and EasyCashLoan reinforce the company's expertise in the P&C and Warranties sector, the total acquisition of 838 Soluções and the purchase of Ben's and QH Consult reinforce the dominance in the Corporate Benefits, Automated Benefits, Flexible Benefits and Education.
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