What does claims insurance provide?
Receivables insurance provides you with security and certainty in payment. In the conditions of modern foreign trade business, companies are exposed to numerous risks in the performance of their work. The certainty that claims for export and domestic business will be realized is a prerequisite for smooth operations and planning, i.e. sustainable growth.
Receivables are your assets – don’t risk it!
If your goal is to increase competitiveness, enter new markets and increase the number of customers, you must offer your customers delayed payment terms.
BUT, by selling your products and/or services on a deferred payment basis, you risk losing some of your assets and putting your business at risk.
If your goal is responsible business, with receivables insurance you ensure payment security and a reliable partner in risk management.
How do you ensure safe and stable business with receivables insurance?
We have been successfully dealing with credit insurance for more than 10 years. Our past experience has shown that there are no safe buyers. When you conclude a deal with a foreign or domestic customer with a delayed payment period, there is always a risk that you will not be charged for the delivered goods or services.
- Protect your business by transferring the risk of non-payment to us, as your insurer
- Offer customers delayed payment terms
- Increase competitiveness
- Expanding to new markets and increasing the number of customers
- Sales growth
What do you get with claim insurance?
- Preventive, in terms of customer analysis, customer coverage on all continents
- Significant improvement in competitiveness based on sales on deferred payment, lower costs compared to other means of security
- Constant monitoring of existing and potential customers
- You can expand sales to new markets
- Increasing income and profitability
- Security through the transfer of the risk of non-payment to the insurer, payment of damages, which indicates that you manage risks in a responsible manner
- Improving liquidity
- You can get better access to financing
If the customer doesn’t pay you and you are not insured, can you afford to lose money?
Unforeseen circumstances and changes in the market can even put your long-term customers in a situation where they are unable to meet their obligations.
If you operate with a profit margin of 5% to cover an unpaid claim of only EUR 10,000, you must increase your income by EUR 200,000.
- Commercial risks
- Non-commercial risks
Insurance of short-term claims, AGAINST COMMERCIAL RISKS:
The subject of insurance is short-term monetary claims of the insured based on delivered goods or services rendered to customers, which arose and were reported during the validity period of the insurance contract and for which the insured issued invoices to customers with a deferred payment term of up to 180 days.
The commercial risks covered by this insurance product are:
- Risk of customer insolvency (bankruptcy, bankruptcy) and
- Risk of prolonged non-payment of debt
What do you get with claim insurance?
AOFI pays compensation in case of realization of the mentioned non-commercial risks:
- Non-payment of debt within six months of the agreed due date if the debtor is the state, state organization or a person guaranteed by the state or state organization
- Political events in the country of the debtor or a state of war in the country of which the debtor is a citizen with another country
- General moratorium on payments, impossibility of converting the currency of the debtor’s country into convertible currencies or prohibition of transfers, until the expiration of these prohibitions
- Prohibition of import of goods or services from the state or state organization as a customer or user of services
- Unilateral termination of the contract by the state or state organization as a customer or user of services, except when the unilateral termination occurred due to a violation of customs or health regulations of the importing country, or the country of service users
- Seizure, damage, prohibition of disposal or destruction of goods, committed by the state or its institutions, from the time the goods cross the state border until they arrive at the foreign buyer
Insurance procedure:
- The exporter submits a request for claim insurance and submits the necessary documentation
- The professional service of AOFI provides the exporter with an indicative offer
- If the exporter agrees with the indicative offer, the AOFI expert service orders credit ratings for all customers to whom the client gives delayed payment terms
- The professional service of AOFI, analyzes the creditworthiness of customers and determines the amount of credit limits
- A final offer is submitted to the exporter, after which, if the exporter accepts it, the insurance policy is signed