Suppose you agree with your debtor that its parent company will issue a guarantee as additional security of payment. Credit insurers can then - by guaranteeing the parent for any losses - issue a (higher) limit on the debtor. If the debtor subsequently goes bankrupt, the credit insurer/collecting agency will initially claim the guarantor. Should the guarantor company also go bankrupt, the insurer will compensate the loss on the basis of this guarantee.
We can send you a sample guarantee text. Please note, you are responsible for the legal validity of the guarantee text.
Important tip!
- always have a obtained guarantee recorded in the limit decision on the debtor who has to pay the original invoice.
