Credit insurance and surety bonds

Trade credit insurance

Anyone who supplies goods and services on account carries the risk that a customer does not pay. Trade credit insurance covers that loss to the extent agreed.

Depending on what is agreed, cover against payment default also includes receivables management along with continuous monitoring and assessment of creditworthiness. The insurer watches your customers on an ongoing basis and reports when their ability to pay deteriorates. In day to day work that early warning is often worth more than the indemnity itself, because it arrives before the loss occurs.

Surety bond insurance

Anyone working in construction knows the situation: the client asks for security. No public sector contract is awarded without a warranty bond, and commercial and private clients increasingly ask for bonds covering advance payments, performance and warranty as well.

Through surety bond insurance you provide your client with the bond they want quickly and without complications. The decisive difference from a bank guarantee is that your credit line at your own bank stays free. The security does not eat into the facility you need for materials, pre financing and investment, and you gain a second provider of security alongside the bank.

What we establish beforehand

Both solutions require an assessment of your business model. We look at the structure of your debtors, meaning how dependent you are on individual major customers, your usual payment terms, your export business and your default rate so far. From that it follows whether cover for the whole portfolio, cover for the major customers only or a single case solution makes sense.

With bonds it is about the facility you need, the duration of the warranty periods and the question of which types of bond your clients actually ask for. We coordinate both with your accounts department and, if you wish, with your tax adviser.