Business Credit Insurance
Delinquent customers can affect a company’s cash flow.
The following graph shows us the percentage of clients with payment delays on invoices issued during 2019 by Mexican companies:
Credit insurance covers non-payment or late payment of national and / or international accounts receivable. The objective is to protect one of the main assets of companies: accounts receivable.
- Risk prevention through monitoring and surveillance of debtors.
- Collection of overdue accounts by amicable or extra-judicial means.
- Compensation for non-payment due to long arrears or insolvency.
- Domestic: covers the sales of Mexican companies in national territory
- Export: covers foreign sales made by Mexican companies
- Commercial riskl:
- Insolvency: when the debtor declares bankruptcy
- Long delay: payment delay
- Disappearance of the client
- Political risk:
- Non-transferable currencies
- Embargo
- Cancellation of Import licenses
- War, among others
- Increase in commercial volume.
- Guarantee of financial profitability thanks to the prevention of defaults.
- Ease of obtaining financing (factoring or banking).
- Reduces financial reserves of the company for uncollectible accounts.
- 100% tax deductible.
- Credit discipline is acquired
