The pathway of credit insurance



A sales process and the acceptance of the total cost of the order by the insurance company goes through the following phases:


1) The Boutique sends an order to the agent who represents a brand in a specific country.


2) The manufacturer sends this order to Fidancia to verify whether it could be a credit risk or coverage.


3) Fidancia checks in its internal databases that coverage can be given (we verify whether we know the boutique, its history, its payment habits and if there have been non-payments or legal issues).


4) Once the solvency of the Boutique has been checked and a “scoring” has been obtained on the business, we send the request from our manufacturing client to the credit insurance company to know if the latter approves the requested credit.


5) The credit insurance company responds. The company either confirms the total of the requested risk, decreases it, or declines it.


6) Fidancia verifies the response of the credit insurance company with its internal “scoring”. If all parties are in agreement, the manufacturer receives a confirmation that the order, in case of non-payment, will be covered and compensated by us by means of our credit insurance company. If the credit accepted by the company is lower than requested, the manufacturer, its agent and Fidancia will study together the risks that come with the operation so as to give it viability. In the case the credit is fully denied, we tell the agent to check whether or not it agrees with the given classification. We also make sure that we always speak with the interested Boutique to verify the information in our hands.


Our main interest is to give maximum coverage to the shop so that our manufacturing client can process its order.


The role of Fidancia as an intermediary in the management of accounts receivable for third parties means that our team must pay a lot of attention and act with caution because we are working with orders which are processed on a certain date and that will generate the manufacture of merchandise normally shipped six months later.


The issue is always the same: we must fulfil all of our commitments so that the wheel stays in motion…credit insurance companies allow a manufacturer to sell credit and attain better funding conditions from its banks (in credit areas and policies to pay for manufacturing). Guaranteed boutiques benefit from this. They can buy merchandise in instalments and they don’t have to pay for their purchases before the order is processed or the merchandise is shipped.


This article aims to shed some light on the people who help make an order arrive at its final destination by helping it to get manufactured and shipped. Likewise, it aims to show that credit insurance companies are all connected. They exchange information regarding delays in payments, payment extensions, non-payments, legal issues, commercial lawsuits, etc., which is why the rules of the game must be transparent for everyone.

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