Credit Insurance

Protect both your current and future cash flow as well as your profits, and free up resources to concentrate on more value-added activities including new business.

Credit Insurance is a product offering from Southern Cross Risk Management and is supported by staff with substantial experience, both in the underwriting and brokering of credit insurance. With credit insurance, you can protect both your current and future cash flow as well as your profits, and free up resources to concentrate on more value-added activities including new business.

Fundamentally, credit insurance improves the quality of a company's bottom line through:

  • Comprehensive protection against the risk of insolvency
  • Enhanced customer relationships
  • Improved banking relationships and access to finance
  • Greater confidence in pursuing commercial opportunities

How does it work?

The credit risk of Credit insured companies are insured by means of a credit limit on each of their customers or “buyers”. The credit limit is an objective opinion on the financial condition of a buyer. It is based on expert knowledge and experience combined with sophisticated underwriting systems. Every credit limit is monitored and adjusted if needed (when trade increases or if the buyer’s financial situation changes)

An insurable event is typically:

  • non-payment after the lapse of a prescribed time period, or
  • liquidation or provisional liquidation, or
  • business rescue, or
  • compromise with creditors.

One should always remember the following about Credit Insurance:

  • Credit insurance does not cover all the risk in a debtor defaulting. The insured always carries a portion of the risk.
  • Insurance limits are not always indicative of accurate trading limits. There are factors other than credit risk which an insurance company considers.
    Businesses should therefore always remember to use credit insurance as part of an effective credit management solution, and not use credit insurance to replace effective credit management.

Products offered:

  • Whole Debtors Book Cover
  • Private and Government Client Cover
  • Single Debtors Cover
  • Instalment-based Payment Contract Cover

For more information

contact

Henning Germishuys