Insure my Sales with Trade Credit Insurance
Whether you operate exclusively in Thailand or internationally, you know the importance of protecting your company against unpaid invoices, which can have a negative impact on your cash flow and could pose a substantial threat to your business. A trade credit insurance policy covers the unpaid credit balance from sales made to your customers.
Coface trade credit insurance is a powerful tool that combines the information and protection you need to mitigate the risk of non-payment. And, if you do have a loss on an insured account, you will be indemnified according to the terms of your policy.
After an in-depth analysis of this manufacturer’s situation, Coface warns the company of the manufacturer’s financial losses in recent years. The CEO, with input from the plant manager and the head of sales for large accounts, is nevertheless prepared to proceed with this order, which alone would increase the company’s annual sales by 5%.
After further reflection, the Chief Financial Officer decides to request a meeting with a Coface analyst, who convinces him emphatically of serious difficulties in cash flow with the prospect due to non-payment of its largest importer in Italy. In the end, the company declines the deal and leaves it to a competitor. That competitor is never paid by the manufacturer, which files for bankruptcy just a few weeks after the meeting with Coface.
Coface trade credit insurance is a powerful tool that combines the information and protection you need to mitigate the risk of non-payment. And, if you do have a loss on an insured account, you will be indemnified according to the terms of your policy.
CASE STUDY ON TRADE CREDIT INSURANCE
Coface insures the trade receivables of Thai SME that produces electronic parts. This company, which has genuine know-how and an excellent reputation, is on the verge of obtaining its first major contract with an international branded manufacturer of electric appliance which requests for 150 days credit terms.After an in-depth analysis of this manufacturer’s situation, Coface warns the company of the manufacturer’s financial losses in recent years. The CEO, with input from the plant manager and the head of sales for large accounts, is nevertheless prepared to proceed with this order, which alone would increase the company’s annual sales by 5%.
After further reflection, the Chief Financial Officer decides to request a meeting with a Coface analyst, who convinces him emphatically of serious difficulties in cash flow with the prospect due to non-payment of its largest importer in Italy. In the end, the company declines the deal and leaves it to a competitor. That competitor is never paid by the manufacturer, which files for bankruptcy just a few weeks after the meeting with Coface.