Reliably protect your liquidity

In today's dynamic economic environment, unforeseen payment defaults pose a significant risk for any company that offers supplier credit. Credit insurance is essential as it ensures the financial stability and continuity of your business. It protects your equity from unexpected write-offs and preserves your liquidity, thereby strengthening your negotiating position with banks and suppliers. By securing your receivables, you can more confidently explore new markets or establish business relationships with new customers whose creditworthiness you may not yet fully assess. Additionally, such a policy often improves your company's rating, which can lead to more favourable financing conditions. Ultimately, it is a proactive tool that helps you focus on your core business instead of worrying about the risk of unpaid invoices, thereby enabling sustainable growth.

A credit insurance is generally suitable for all companies that deliver goods or services on account, thereby exposing themselves to the risk of payment defaults. It is particularly relevant for small and medium-sized enterprises (SMEs), as they often have fewer financial reserves to compensate for larger losses. Export-oriented companies also benefit significantly, as they can protect themselves against country-specific risks and the more complex collection of receivables abroad. Sectors with long payment terms or high order volumes per customer, such as mechanical engineering, construction, or wholesale, find an important protective mechanism in credit insurance. Even for growing start-ups and freelancers who wish to actively manage their debtor risk, this insurance can be a valuable tool to gain financial security and establish a solid foundation for business growth. nextsure analyses your individual needs.

When an insured default on receivables occurs, a structured approach is crucial. Firstly, you should promptly and within the stipulated timeframe report the payment default to your insurer. The specific deadlines and reporting formalities are outlined in your policy conditions. Simultaneously, it's important to gather all relevant documents that support the claim. These typically include copies of invoices, delivery notes, reminders, and any correspondence with the defaulting customer. In the event of the customer's insolvency, proof of the opening of insolvency proceedings is often required. The insurer then reviews the reported claim. Following a positive review and any waiting periods or after the completion of the debt collection process (if included), the insurer provides compensation up to the agreed insured amount, minus any possible deductible. A digital provider like nextsure supports you with efficient online processes for reporting and managing claims.

In principle, any company that provides deliveries or services on credit can take out default insurance. Important prerequisites are a proper dunning procedure, a transparent bookkeeping system, and the willingness to provide information about sales and debtor structures. The exact criteria may vary depending on the insurer and their rates. Nextsure would be happy to review your individual case.