Protect Your Business with Credit Insurance

Mitigate the possibility of outstanding debts through trade credit insurance.

How does credit insurance work?

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The role of  the trade credit insurer is to keep you up-to date. The risk experts will continuously analyse each of your customers to ensure their reliability. This guarantees you safe commercial development, and help you to work with the right partners. Risk Experts will analyze the creditworthiness and financial stability of your  insurable customers and assign them a specific credit limit, which is the amount trade credit insurer will indemnify if that customer fails to pay.

How does credit insurance work?

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When signs indicate a company is experiencing financial difficulty, you will be notified of the increased risk of selling to that debtor. An action plan will be established to mitigate and avoid loss.

If an unforeseeable loss should occur, the Trade Credit Insurer would pay you the claim benefit up to the amount defined in your policy terms.

What is credit insurance?

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Credit insurance allows companies to grant payment periods to their customers domestically and internationally with confidence.

Trade credit insurance protects your invoices against excessive late payment or – in the worst-case scenario – default by your customers. It compensates for your loss by indemnifying you upto 90% .  A range of options are available so you can adjust your coverage to meet specific risks (such as political or manufacturing risks, litigation, etc.).

COFACE Group, through its insurance company partners in Thailand, offers simple and flexible credit insurance products that are tailored to fit your size, sector and business ambitions.

What is credit insurance?

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With trade credit insurance your customers’ financial health is monitored helping you make the right business decisions. And having business credit insurance means you have easier access to financing.

In short, when you insure your sales in Thailand and / or for export, you protect your cash flow and preserve your margins. You also optimise the management of your accounts receivable and safeguard your growth.

Insure My Sales With Trade Credit Insurance

Trade credit insurance provides 4 essential services so you can avoiding the risk of customer non-payment:

  • Optimise the management of your receivables

    Business Credit insurance is a tool for managing your accounts receivables: you can identify reliable customers, and set realistic credit limits. In addition, you can improve your collection rate when you put your trade receivables in the hands of a reputable third party.

  • Ensure the Security of Your Cash Flow

    One out of every four businesses faces closure because of customer non-payment. Safeguarding your business from unpaid invoices ensures the stability of your cash flow and facilitates the growth of your revenue without undue concerns. Business credit insurance stands as the sole instrument shielding the economy from bankruptcy cascades and the subsequent job displacements they entail.

  • Easy access to financing

    Credit insurance ensures optimized cash flow, enabling you to fulfill one-time requirements. It serves as a mark of confidence that reassures your financial partners, enhancing your ability to secure future financing.

  • Expand Your Company

    Trade credit insurance helps you assess your risks and identify the customers and partners you can work with.

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How much does credit insurance cost?

In general , Trade credit insurance premium is calculated based on your turnover (the net sales figure you pull in as a company). Your past transaction history and the debtors with whom you are trading are also taken into account. 

When you apply for a quote, a two-part process will follow. First, the insurance company will assess the type of trade you are involved in and your overall business profile to determine a policy rate and terms. Then, the trade credit insurer will analyze your trading partners and their financial strength to determine the credit limit coverage that will be available to you.

For example ; if a company has a t/o of over  THB ฿ 38 million , the cost equates to a premium rate that varies on average between 0.1 and 1% of turnover. 
This figure is based on the volume of insurable business, the profile of your company – in particular, its area of activity and history of claims – and your requirements (the type of coverage, specific options, etc.).

Grow your business with a risk management expert

100000customers

200countries covered

670billion € exposure on 2.6 million debtors

AM Best logoAStable outlook

Moody's logoA1Stable outlook

AA-Stable outlook

What does failure really cost you?

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฿

The extra turnover needed to make up for loss

The simulation above shows the additional turnover that your company must achieve to compensate for the loss due to a non-payment.

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Testimonials

Mark Harsent, UK Risk Manager, Denmaur Independent Papers Ltd

Having used credit insurance for many years, I’d recommend Coface because their response times on limits are exceptionally good compared with other providers, their underwriters know what they are doing and they are always happy to discuss any issues.

Diagast

The results are clear-cut: since 2008, Diagast has not had any unpaid invoices on the events covered.

Frequently asked questions

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Disclaimer:

Coface Group, through its subsidiaries/affiliates or insurance partners, offers a comprehensive range of trade credit insurance, business information and debt collection services in approximately 100 countries. 
 

In Thailand, trade credit insurance and all related services are provided by Coface's insurance partners i.e. insurance companies duly licensed and regulated by the Office of Insurance Commission (OIC), namely, AXA Insurance, Muang Thai Insurance and Sompo Thailand Insurance.