What is it?
It is a protection for the company against the risk of default that occurs from business transactions between the insured and their clients in domestic territory or exportations. Regarding the export credit insurance it is also possible to cover against political risks.
Cash flow preservation regardless of the economic scenario; reduction of Reserve for Doubtful Accounts thus increasing the company's profit; access to more interesting funding sources.
Constant monitoring of the risk levels for both national and international clients’ portfolios.
Opportunities: Expansion of the business’ volume with current customers (domestic and international) as well as development of new customers and markets.
How does it work?
1. Credit insurance may suffer some variations according to the local legislation in force, where. Due to its specialization and global presence, SpotCred is prepared to adapt its products to local requirements;
2. The duration of the contract can be either 12 or 24 months;
3. The credit limits are requested through the insurer’s online tool and submitted to the insurer’s assessment;
4. Each month the insured must report the amount invoiced to customers with insurance coverage or the total amount of used credit limits, according to the contracted conditions by the insured;
5. Should there be overdue invoices, the insured must report this information to the insurer;
6. In case of a claim arising from protracted default the insurer shall indemnify the insured within 30 days after a waiting period of 150 days, during which the insurer will try to recover the outstanding amount. In case of bankruptcy, the insurer shall indemnify within 30 days of the insolvency’s declaration.