One can think of plenty of reasons why companies do not want to insure their turnover: they think the debtor risks are too limited, they have never had claims or they simply find it too expensive. It is of course great to score a big order, but the certainty that costs incurred and outstanding expenses are covered is also very nice. Especially if the amount is very high, the client is unknown and there is a long lead time and payment condition.
Credit insurance for single or one-off orders
How does it work?
- Xolv first checks the creditworthiness of the client.
- You provide Xolv with the following information regarding the assignment:
a. Contract
Timetable
c. Casflow forecast assignment
d. Purchasing and manufacturing costs
e. Payment schedule and payment terms - You fill in the application form.
- Xolv requests quotes and prepares a quote comparison.
- You accept the offer and Xolv has the policy issued.
Hedging of risks
When insuring a transaction, you cover manufacturing and contract risk as well as payment risk. So if you get the order, procure materials and incur production costs, you are already insured for the costs incurred in case your client goes bankrupt before you have delivered. And should you have delivered and invoiced (in parts), the outstanding accounts receivable is insured. Upon acceptance of the order and the credit insurance the credit insurer can no longer revoke the limit and the transaction is (and remains) insured.
More information
Want to know more about closing a one-off transaction or request a quote? Then contact the specialists at XOLV.
