COMMERCIAL CREDIT INSURANCE

NOTE: Doing business with a broker will not add any fees to the premium charged by the insure

What is Commercial Credit Insurance?

Commercial credit insurance is one of the best ways to protect a major part of your business, which generally represents more than 40% of your assets, your client accounts.

CREDIT INSURANCE INSURES COMMERCIAL RISK:
  • All losses resulting from a bankruptcy:
    • Ex.: C-36 in Canada or Chapter 11 in the United States
  • Undisputed sales
    • Of goods or services to your domestic or foreign buyer
  • Repudiation of contract
  • Political Risk
    • Non-transfer of hard currency
    • Revolution
    • Cancellation of importation or exportation permit
    • Etc
WHAT DOES CREDIT INSURANCE CONTRACT INSURES?:
  • Sales made on Open credit
  • Excluding : Credit Card and Cash pre-payments
  • On short terms (30 to 90 days)
    • Longer terms are the exception
BENEFITS:
Credit insurance provides policyholders with:
  • Additional information sources regarding credit
  • Improved banking relationships: financial institutions loan at favourable rates and increase credit margins when assets (represented by the accounts receivable) benefit from an additional collateral security
  • Reimburses bad debt losses
  • Increases sales by allowing for larger extension of credit to good risk debtors as well as nes customers overseas
  • More confidence to accept larger orders
  • Manages and controls accounts receivable
  • To obtain assistance with litigations and recovery with certain insurers
  • Ensures profit margins
FEATURES :
  • Affordable alternative to letters of credit, which can be expensive and delays
  • Wide range of additional protections, such as :
    • Endorsements for shipping transportation delays
    • Customized products
    • Protection against contract repudiation
    • Pending orders

We can even demonstrate that a credit insurance program will cost you nothing at the end of the year.

IS CREDIT INSURANCE RIGHT FOR MY COMPANY ?
  • Do you sell to other businesses and you have accounts receivable ?
  • Does your portfolio of clients have a high concentration of risk ?
  • Do you refuse important orders because you lack of financial information on your clients ?
  • Do you wish to increase financing from your financial institution ?
  • Do you want to be more competitive by offering higher terms to your clients ?
  • Do you find that letters of credit are too expensive and difficult to manage ?
  • Would you like to develop a market and/or increase your Canadian, American and/or International sales with minimal risk ?
ANY OF THESE CONDITIONS CAN MAKE CREDIT INSURANCE AN IMPORTANT TOOL FOR YOU!

For your business to remain strong and withstand record numbers of bankruptcies, corporate frauds and geopolitical uncertainties, you must, as an executive, be well informed of the various options offered on the credit insurance market for your benefit, as well as for the benefit of your employees.

EXCEPTIONAL GROWTH IN NORTH AMERICA
Used by thousands of businesses worldwide, credit insurance is now achieving a significant development in North America, due partly to:
  • Bank recognition
  • Globalization of the economy
  • Frauds, notably financial statement frauds
  • Exportation
  • Adverse economic trends
ALREADY INSURED?
If your company already has credit insurance, we can:
  • Review the terms to maximize your coverage at a competitive premium
  • Offer you other options to augment credit limits that are partially approved or refused
  • Make sure that all endorsements relative to your company's activities are included

Credit Risk

During our first meeting, we will be able to show you the importance of credit insurance. Credit insurance will not only enable you to absorb losses resulting from unpaid balances, it can help you develop a new client base, which will in turn reduce the shortfall in annual sales due to the loss of this client, as well as help to increase the sales to your existing clients.

What you must generate as an additional turnover to cover a credit loss:

OUTSTANDING BALANCE OF 25,000$

Profit margin of:
Incremental sales needed to cover the loss:
5%
500,000 $
10%
250,000 $
25%
100,000 $
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