Financial Risks
Financial Risks
Risk Doesn't Always Come with Fire
A company's largest single-item loss is often not a fire but an uncollectible receivable or a bond that is cashed out. These risks are clearly visible on the balance sheet, but are often not included in classical insurance programs.
Credit insurance, surety insurance and financial abuse guarantees; We evaluate your credit limits, collection terms and contractual obligations, and construct the guarantee by taking into account your financing costs.
- Credit, surety and abuse lines
- Buyer limit management and collection support
The main function of credit insurance is not compensation, but to get to know the buyer before making a sale.
Scope
Coverage Scope
Trade credit insurance
Guarantee against buyer bankruptcy and prolonged default risk in domestic and export receivables.
bail insurance
As an alternative to a letter of guarantee, a contractual guarantee that does not consume your bank limits.
Buyer limit management
Credit limit allocation on a buyer basis, continuous monitoring and periodic updating.
Financial abuse (fidelity)
Direct losses due to employee disloyalty, fraud and electronic crime.
Political risk and export
Protection against country-related transfer barriers, expropriation and payment ban risks.
Collection and legal pursuit
The collection process carried out through the insurer network for overdue receivables.
Key Risks
What We Watch in This Area
Buyer Concentration
Concentrating most of the turnover in a small number of buyers creates the risk of single-item losses.
Maturity Extension
Extending payment terms delays detecting default and reporting it in a timely manner.
Contractual Obligation
A letter of guarantee converted into cash is a loss of both cash and bank limit.
How is it determined?
Data Determining Financial Collateral
- Distribution of buyer portfolio and share of top five buyers in turnover
- Average maturity, delay trend and collection performance
- Domestic-export breakdown and risk rating of the countries studied
- Contractual guarantee obligations and bank limit usage
- Internal control structure; separation of duties in payment and approval processes
- Periodic cash cycle of the business line
How We Work
Financial Assurance in Four Steps
Portfolio Analysis
We examine buyer distribution, maturity structure and past collection performance.
Limit Allocation
We determine credit limits on a buyer-by-buyer basis together with the insurer.
policing
We set the guarantee rate, exemption and notification periods according to your sales policy.
Monitoring and Compensation
We monitor the limits, notify the default and carry out the compensation process.
FAQ
Frequently Asked Questions
As a rule, insurers want the entire portfolio. Structures limited to selected buyers are also possible, but the conditions differ; We determine the structure together according to your sales policy.
Yes, as long as the employer agrees. Since surety insurance does not occupy your bank cash and non-cash limits, it creates additional financing capacity during growth periods.
No. Credit insurance is the most well-known line; Surety insurance, financial abuse and political risk guarantees are also under the same heading. Which one is required depends on whether the risk is concentrated on the credit side or the liability side.
In overdue receivables, the insurer's collection network comes into play; Legal follow-up costs are shared within the framework of the policy terms. In practice, a significant portion of the files are resolved at this step before reaching the compensation stage.
Do You Have a Need in This Area?
Let's assess your risk together and build the coverage structure around your needs.