We were asked this question by a client in the automotive industry who only received a limit of EUR 2 million on its main debtor, whereas EUR 4 million was desired.
Our plan of action
Our plan of action initially focused on increasing the limit with the existing insurer. The debtor in question was handled at the credit insurer's 'special management' department so all financial information including forecast and liquidity planning was available. Based on this information, the existing insurer did not want to issue a higher limit.
Regain access to cash
Xolv found the solution by taking out Top-Up credit insurance for this debtor with a second insurer, which allowed our client to regain additional liquidity in a very flexible manner. The advantages of the additional financing (which is often cheaper than traditional financing via a bank) far outweighed the additional costs of the Top-Up insurance.
Would you also like to benefit from more financial clout, Then contact us.
