Do you do business on credit? Then a credit insurance no luxury, argues Coen Blazer, who is engaged daily in analysing the creditworthiness of buyers for Xolv's relationships. 'Especially not given the current turbulent situation in the world,' he says. 'Any developments around brexit or the trade war between China and the US could almost immediately affect the creditworthiness of companies.'
Creditworthiness is continuous process
Most important in credit insurance is the check on creditworthiness of buyers. Blazer: 'The ideal situation is obviously a 100 per cent coverage ratio, but that is usually not possible. Creditworthiness can also change during the period you do business with your buyers.'
Xolv sees it as her primary task of keeping coverage on your customers as optimal as possible. This is an intensive and continuous process, in which Blazer plays an important role. 'Fortunately, thanks to my years of experience as a risk underwriter and credit analyst good overview of the risk assessment process. As a result, I can skillfully anticipate the possible causes of an incomplete limit.'
Thinking in solutions
For example, Blazer can request the right (complete) information, arrange guarantees or help initiate talks between the credit insurer and your buyer or supplier. 'Full risk coverage is obviously the aim here, but sometimes the risk profile, even after a reassessment, unfortunately does not allow the insurer to fully accommodate this.'
Like his colleagues, Blazer always thinks in terms of solutions in such a situation, in line with the company's philosophy. 'And fortunately, there are several solutions to be found in that situation,' he says. 'Think, for instance, of additional securities as a letter of credit or a solidarity declaration. With this, by the way, the buyer must agree, but they usually do. Also, a top-up limit is a reasonably easy option. Alternatively, a other party assuming the residual risk, so that the coverage ratio is still 100 per cent or just below.'
Reactive and proactive
The above solutions are mainly reactive, but Blazer stresses that Xolv is also increasingly proactive towards its customers and relations. 'Thus, we also analyse the development of debtor portfolios, allowing us to take proactive action if changes are observed in this. Customers should definitely expect that from Xolv. It's part of our service and we just really enjoy figuring that kind of thing out for customers.'
Do you also want optimal coverage for yourself or your suppliers? Or do you have any questions about this article? We are happy to help!
Also read: 6 ways to get more out of your credit insurance policy
