A punctual and correct credit risk management system is the key element in the success of every company.
Sales of capital goods abroad
Typically carried out with medium or long term credit periods.
Coverage is formulated to provide protection against default by public or private debtors so protecting the exporter from commercial and political risks (such as embargo, currency inconvertibility, acts of a political nature) that might lead to a debtor being unable to honour an obligation to pay.
Non-payment coverage can also provide protection against the failure by an overseas bank to honour letters of credit.
It is also possible to structure cover against pre-shipment risks, against the risks of cancellation of the contract in the preparation phase of the assets and extend it to the undue enforcement of the guarantees normally provided ( advance, performance, etc.)
Commercial credit risk insurance
Coverage is arranged for whole or part of the client portfolio for both domestic and export sales.
It covers the default by the debtor due to insolvency, established by a bankruptcy procedure (so-called insolvency by law) or late payment that goes beyond a fixed period (so-called insolvency by fact).
A key factor of this tool, in addition to the protection against non-payments, is the assistance for credit recovery and above all the preventive assessment and monitoring of creditworthiness of the counterpart, allowing to address and optimize sales and expansion strategies on the markets.
Coverage can be extended in the case of export sales to include political risks, ie embargo, currency inconvertibility, political acts that make it impossible for the debtor to honour the obligation.
Securization of trade reveivables
These are specific forms of Credit Risk Insurance to support the issue of securities supported by Commercial Credits.
The insurance is structured to enhance the portfolio of trade receivables to a level necessary to achieve a desired rating. The coverage structure will have to consider the cash flow needs of the issue so that, in case of non-collection of the amount due, the indemnities provide funds to cover the financial commitments undertaken by the issuer.