Cashflow is one of the most important factors for a company’s financial health. There must always be enough cash available to cover bills, wages, and other short-term obligations. A positive cash flow is only possible if there is a good balance between debtors, creditors, and inventory. Clear planning and transparent KPIs for all involved employees help with this.
An efficient debtor management is also essential. Customers who pay their invoices late or not at all pose a risk to your cash flow. Addressing this issue is, however, a difficult balancing act: you can set strict agreements on payment terms and conditions, but at the same time, you don’t want to disrupt the customer relationship.
Credit insurance supports your debtor management
A credit insurance policy offers support in your debtor management:
- Your credit insurer investigates and monitors the creditworthiness of your customers.
- You can transfer late payers or defaulters to your credit insurer, which increases the pressure on them.
- If payment on your invoices still fails to arrive, your credit insurer will compensate you for the loss.
In addition, with credit insurance you enjoy many other benefits:
- Your credit insurer helps to find alternative collection solutions and risk financing.
- Employees responsible for debtor follow-up can receive training.
- The insurer checks and improves your general and specific sales conditions.
- You can count on immediate intervention in case of credit limit problems.
- Claims are dealt with immediately and closely followed up to ensure quick payment.
- Companies with subsidiaries elsewhere in the world are protected everywhere through international insurance programs.
Want more info?
Contact your account manager or call us at 03 482 15 30.
