Potential Uses and Limitations of Trade Credit Insurance in Credit Management
Trade credit insurance is an instrument that supports the handling of risks when granting supplier credits in the sales process of the lending company. In Germany, around 45,000 companies use such an agreement as part of their credit management. What are the motives for using such credit insurance, in what forms do companies use this instrument and when is it worthwhile to use it?
Credit insurances today offer differentiated products, the selection of which requires very careful consideration of the individual company situation and the credit policy adopted. Modern credit management software can help here to make operational processes significantly leaner, protect credit management from missing notifications and drastically reduce the effort required to create relevant reports.
White Paper Content
- Tasks of credit insurance
- Basic types of insurance contracts
- Duties of the policyholder
- Design variants for the use of credit insurance contracts
- Possibilities of IT support in the processing
- Support in the named and flat-rate covered area and mapping of the obligations