{"id":19695,"date":"2022-11-08T10:41:49","date_gmt":"2022-11-08T10:41:49","guid":{"rendered":"https:\/\/www.factris.com\/?p=19695"},"modified":"2023-09-08T14:36:53","modified_gmt":"2023-09-08T14:36:53","slug":"what-is-credit-insurance","status":"publish","type":"post","link":"https:\/\/www.factris.com\/en\/news\/what-is-credit-insurance\/","title":{"rendered":"What is credit insurance?"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.16″ _module_preset=”default” custom_padding=”40px|||||” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ _module_preset=”default” max_width=”700px” custom_padding=”2px||4px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_button button_url=”\/en\/news\/” button_text=”Back to the news page” module_class=”btn-back” _builder_version=”4.18.0″ _module_preset=”default” custom_button=”on” button_text_color=”#001194″ button_bg_color=”rgba(0,0,0,0)” button_font=”||||on||||” button_icon=”#||divi||400″ button_icon_placement=”left” button_on_hover=”off” hover_enabled=”0″ global_colors_info=”{}” button_text_color__hover_enabled=”off|hover” custom_padding__hover_enabled=”off|desktop” custom_padding__hover=”|||59px|false|false” sticky_enabled=”0″][\/et_pb_button][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” max_width=”700px” custom_padding=”37px|||||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_text_color=”#00305e” header_font_size=”46px” header_line_height=”1.4em” header_2_font=”|700|||||||” header_2_text_color=”#000a54″ header_2_font_size=”27px” header_2_line_height=”1.2em” header_3_text_color=”#000a54″ header_3_font_size=”25px” header_3_line_height=”35px” header_4_text_color=”#000a54″ header_4_font_size=”21px” header_4_line_height=”29px” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]When you deliver products or services on account, you naturally want the invoice sent to you to be paid as soon as possible. Yet unfortunately, it regularly happens that the invoice is paid late or, in some cases, not at all. But what if, for example, your customer goes bankrupt and therefore can no longer pay; what happens to your money then? Fortunately, there are several ways to still receive your money at such times. Credit insurance, for instance, can help. But what exactly is credit insurance, how does it work, and how does it differ from factoring?<\/span><\/p>\n

Credit insurance: what is it?<\/span><\/strong><\/h2>\n

Do you want to make sure your sent invoices will always be paid? Then taking out credit insurance is a good option. Unfortunately, it can happen to any organization at some point that a major customer suddenly drops out due to bankruptcy. As a result, a customer’s bankruptcy can also indirectly have unpleasant consequences for you. With credit insurance, you do not run any risks when a customer is unable to pay an invoice sent by you for financial reasons. In such a case, the insurer will make sure that you still receive the amount due.<\/span><\/p>\n

How does credit insurance work?<\/span><\/strong><\/h2>\n

Do you supply products and\/or services to business customers? Then, in most cases, it is possible for you to take out credit insurance. When you take out credit insurance, you pay a premium over your turnover to the insurance company. If a customer goes bankrupt, for instance, and you are still owed money for work completed earlier, the insurance company will ensure that you are paid the amount in question. Therefore, with credit insurance, you are always insured for financial arrears caused by someone else’s non-payment. This way, you ensure that cash flow keeps running, and you do not end up in financially awkward situations. The credit company then takes over the claim and will work to still get the customer’s money.<\/span><\/p>\n

Who is credit insurance interesting for?<\/span><\/strong><\/h2>\n

Credit insurance can be interesting for different types of businesses to take out. It is often thought that credit insurance is only for larger companies, but nothing could be further from the truth. There are different types of credit insurance available. Which type of insurance best suits your situation depends, among other things, on the size of the company and the number of invoices. When taking out credit insurance, you can choose from the following types:<\/span><\/p>\n