Overview of Credit Insurance

  • Credit insurance provides cover to businesses against non-payment of debts owed to them by business customers for goods or services provided on credit terms.
  • It is an invaluable aid to successful national and international business-to-business trade. Credit insurance covers the risk of financial loss that can occur when trade credit is offered by a business to its corporate customers – thus providing a set period of credit after provision of products or services before payment is due.
  • In these circumstances, there is always a risk of non-payment, either because the customer may be unable or unwilling to pay, or because an unforeseen event prevents successful completion of the sales.
  • As per the Pareto principle, 20% of clients contribute to 80% of the turnover of most businesses. As such, default or insolvency of a major customer can adversely impact on normal business operations and may even result in insolvency in some cases. Credit insurance contributes to mitigate these credit risks.
  • CGI’s business is to provide credit insurance to local suppliers for both domestic and export markets.
  • The growing economic turmoil looming in our main export markets is likely to take its toll on credit risk in terms of soaring number of defaults and insolvencies. Credit insurance is one of the best solutions to protect your business and your cash flow especially in recession times.

Main advantages of credit insurance for suppliers and traders

  • Professional management of buyers through credit limits
  • Protect cash flow & profits from bad-debt losses
  • Sell safely to new and existing customers
  • Secure Financing Terms
  • Enter domestic/international markets with confidence
  • Increase working capital availability
  • Reduce bad-debt reserves
  • Protect your trade
  • Better trading conditions
  • Enhanced security
  • Debt collection service





How much did the recent economic turmoil affect your debtors’ payment behaviour?

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