Credit Insurance
Credit
Insurance
Need Insurance?
You've come to the right place.
Features
One or more existing debts covered in the event of death unemployment also covered
A financial lifesaver in the event of certain catastrophes
Benefits
- Identifies potential losses
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Access to key credit risk analysis from insurers on your client, their sector, and political risk gives invaluable insight to help avoid losses.
- Transfers risk to insurer’s balance sheet
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Credit insurance removes the credit risk from your balance sheet, which improves your margin and bolsters your P&L.
- Reduces bad debt provision
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As potential losses are covered, you can reallocate excess bad debt provision as working capital.
- Facilitates access to finance
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Having credit insurance can increase your credit rating giving access to improved and more economical levels of finance.
- Balance sheet engineering
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You can use the debtor asset on your balance sheet to free up working capital by unitising invoice discounting or factoring.
- Cost effective security provision
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Credit insurance can act as a cost-effective replacement for expensive bank guarantees and letters of credit.
- Enables companies to extend credit terms
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As your shipments are covered, the fear of “not getting paid” is removed meaning you can offer extended payment terms to customers, giving you a competitive edge in your market.
- Reinforces credit management processes
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Disciplines within a credit insurance policy support best practice and sound credit management processes, reinforcing and enhancing your existing procedures.
- Access to credit risk expertise and analysis
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Support is available for setting credit limits on your customers and, in the event of a claim, the management of recoveries and salvage.
- Promotes sales growth whilst maintaining controls
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The enhanced credit management processes reinforced by credit insurance allow you to safely extend payment terms to customers in existing and new or developing markets.
- Directs and supports sales to higher margin markets
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Top or key account cover is available to support sales to specific or high-level margin markets.
- Supports mergers and acquisitions
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Credit insurance provides investee companies with protection against bad debt from acquired or merged customer portfolios.
Add-Ons
- Family Rider
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A 1-4 Family Rider is typically required for multifamily investment properties with up to four units or two-to-four unit properties that are owner-occupied. This type of rider permits the lender to collect rent from the property if you default on the loan. Any rent the lender collects goes to pay down the outstanding loan balance until the default is cured. If you pay your mortgage on time and do not default on your loan, a 1-4 Family Rider should never be an issue. If you default on the loan, the rider provides protection for the lender because it can use rental income from the property to pay the mortgage.
- Condominium, Co-Op or PUD Rider
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This rider is required for mortgages on condos, co-ops and PUD (planned unit development) properties. The mortgage qualification requirements for these properties are different than for a single family home, as outlined in the rider. For example, to qualify for a mortgage on a condo, you are required to provide additional documents and have different insurance coverage.
- Second Home Rider
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This rider is required for a mortgage on a second home or vacation home
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