What is credit insurance?

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Credit insurance protects the subscribing company from the risk of non-payment of its own invoices.

 

Just as in other markets, fashion companies often see themselves forced to sell on credit. This means having to deal with collection on due date. The risk of non-payment is always present from the issuing of an invoice to the moment of payment. Credit insurance allows companies to protect sales and ensure collection of their invoices.

 

Insurance companies operate by means of insurance policies. By monitoring buyers’ performance and their financial soundness, they can give a client the most suitable coverage. This in turn varies depending on the information available and Fidancia, with its work, is one of the major sources of information. This is frequently reviewed and consequently the conditions of an insurance policy may vary.

 

In case of unpaid invoices, the insurance company will reimburse a client in the proportion covered by the policy.

 

Credit insurance is an essential part of the b2b trade.

 

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