At its core, credit insurance is a tool of a far-sighted comprehensive business planning. As the main pillar supporting your strategies and projects it helps you to secure your liquidity.
The credit insurance covers the loss of receivables from goods deliveries, services, or contracts for work (supplier credit). Annual contracts (binding contracts) can also be covered. Not only the loss of an invoiced receivable can be insured, but also the period before the invoice is created, i.e. manufacturing risk. With a special solution, you even protect yourself against the risk that your suppliers cannot (can no longer) deliver.
Bad debt means for the credit insurance both the inability to pay (e.g. due to insolvency) and the debtor’s unwillingness to pay (delayed payment). Should the loss of a receivable occur, the credit insurer jumps in and your liquidity remains secured – your loss of profit is reduced.
An ounce of prevention is worth a pound of cure
The function of loss prevention via the credit insurer has a similarly important, if not a decisive, role. Before you supply to the customer on payment terms, just ask your credit insurer if your customer can be insured for the requested sum. Your credit insurer will then inform you of their decision in the form of a credit limit. As a result, all revolving receivables in relation to this customer are insured against the risk of a bad debt within the framework of this limit.
Customers with insufficient creditworthiness will not be insured. An important note for you: be careful and request a pre-payment or guarantees from your customer.
In addition, you can have the debt collection insured with many providers combined with credit insurance or separately. If the reminder periods are exceeded, all necessary measures will be initiated to collect the accounts receivable for you. Bad debts and additional costs (e.g. legal fees) can be reduced in this way. Often the timely reference to the professionally organized debt collection of the credit insurer results in prioritized settlement of your debtor’s receivables. An additional measure to secure your liquidity.
Insure your liquidity!
Simply download this questionnaire in German to your computer and send it over completed to gt@cib-kreditversicherung.at (please fill in completely so that we can invite the best offers for you):
If you need an English version of the questionnaire, please, send your request to gt@cib-kreditversicherung.at.
The day-to-day business usually requires quick and flexible action. You will therefore receive a customized offer from us as soon as possible!
Special credit insurance solutions
If your customer’s creditworthiness is insufficient to insure the total order or annual volume against a bad loss, you can increase the too low subscribed credit limits with an excess credit insurance (credit limit increase). Without the credit limit increase you would have to go on with supplies to this customer partially on your own risk, always taking into account the insurance conditions and credit insurer’s regulations. Or you can simply take an additional coverage from the second insurer, the so-called excess credit insurer. Thus, you achieve the following options:
- An individual increase of your credit limits – the excess credit insurer assesses here all risks independently before offering the coverage.
We offer coverage options not only for partial decisions but also for rejected credit limits, provided the appropriate creditworthiness. It is the top-up credit insurer (and not the primary insurer) who assesses the creditworthiness and may still have free capacity. - An automatic doubling of all credit limits of the primary insurer without additional assessment, yet under control of the underlying debtor management. Consultancy on credit or debtor management can reasonably complement the product or even be a prerequisite for the offer. In this case, the sum insured can also be purchased over a period of two or three years in order to optimize the amount of premium.
- A credit limit increase by the primary insurer directly or an affiliate company.
The excess credit insurances feature an easy handling even if there are differences in administrative efforts. We’ll develop with you a tailor-made concept that allows you to
- completely insure previously uncovered parts of receivables or your largest customers (less deductible),
- reduce your deductible if individual customers become insolvent,
- increase your liquidity by selling more receivables within the scope of factoring or an easier refinancing via your main bank (we offer this option exclusively via our partners).
To increase your credit limit simply use this questionnaire in German and send it over completed to gt@cib-kreditversicherung.at (please fill in completely so that we can invite the best offers for you):
If you need an English version of the questionnaire, please, send your request to gt@cib-kreditversicherung.at.
If your need for bad debt cover is focused on a single large-scale project or certain customer, you can specifically insure the selected risks with a Single Buyer Policy. This applies to both domestic business and export. A requirement is usually a medium or higher volume of receivables.
We’ll develop with you a tailor-made concept that allows you to
- optimally insure major risks or individual project transactions or exports to difficult or previously unknown markets and
- create a basis for the sale of individual receivables (forfaiting) or for bank financing of a project transaction.
For your Single Buyer Policy, simply use this questionnaire in German and send it over completed to gt@cib-kreditversicherung.at (please fill in completely so that we can invite the best offers for you):
If you need an English version of the questionnaire, please, send your request to gt@cib-kreditversicherung.at.
As a manufacturer of facilities, machines, plants, and other long-lasting assets you need to be capable of great endurance. From the order placement and start of production to final acceptance of the capital good and eventual payment you take on the financing function for your customer often for months or years. With often unpredictable risks: due to the long-term period, markets, the financial circumstances, and political frameworks can change and prevent the successful completion of your business.
As a variant of credit insurance, the credit insurance of capital goods protects you from medium- or long-term bad debt risks. Both individual covers (defined project or risk) and cover for all your projects with a single framework agreement are possible. An additional advantage for you: credit insurers not only know the way around the expected risks, they also have extensive experience in handling projects that do not develop as expected.
We’ll develop with you a tailor-made concept that allows you to
- optimally insure major risks or individual project transactions or exports to difficult or previously unknown markets,
- receive a non-cancellable cover note until the end of the credit period,
- create a basis for the sale of individual receivables (forfaiting) or for bank financing of a project transaction.
For your credit insurance of capital goods, simply use this questionnaire in German and send it over completed to gt@cib-kreditversicherung.at (please fill in completely so that we can invite the best offers for you):
If you need an English version of the questionnaire, please, send your request to gt@cib-kreditversicherung.at.
The excess-of-loss coverage concepts focus on bad debt losses that actually threaten your existence or at least can significantly impact your earnings. You build on a redeemable debtor management system accepted by the insurer, within the framework of which you assign the credit limits yourself. You can also purchase an XL-coverage after a credit management audit and the corresponding adjustments in the operational process.
Basically, those major losses are covered that are higher than the average losses for the past three to five financial years. Excess-of-loss insurances are particularly suitable for large companies or larger medium-sized companies. With such an insurance you achieve
- insurance of possible large bad debt losses with business implications,
- for some models, complete independence of the credit insurer’s credit limits, since you assign the credit limits by yourself,
- as a result, a high degree of freedom of decision considering internal credit management,
- less administrative effort for the credit insurer (only the credit management procedure is an integral part of the policy and must be strictly complied with).
For your excess-of-loss coverage concept, simply use this questionnaire in German and send it over completed to gt@cib-kreditversicherung.at (please fill in completely so that we can invite the best offers for you):
If you need an English version of the questionnaire, please, send your request to gt@cib-kreditversicherung.at.
Cherry picking policy
Choose which customers you want to insure or not. It is even possible to insure a single customer or a single contract only – whether in export or in Austria.