A credit insurance protects you if a customer doesn´t pay for the service or product that you delivered to them.
Regardless of the underlying reason for not paying, insolvency or political causes, a credit insurance will indemnify you.
In addition to the obvious with indemnification to a loss, a credit insurance gives more benefits to the insured.
You will avoid disturbances in your cash flow that could have put you in a difficult situation. Credit insurance enables you to offer open terms to your customers and to offer longer credit terms, which gives a competitive edge and possibly increased sales.
A credit insurance will help you to safely sell to new customers, but also increase your exposure to existing customers, with the confidence that additional sales are protected.
You will receive important information and get early warning signals if a customer has late payments with other insured companies and consequently protect your company from potential risky exposure and make informed decisions.
Last but not least. You can sleep well knowing that your outstanding invoices are protected.
A Credit Insurance works briefly as shown below: