Insolvency protection is an inexact science given the myriad risks that exist outside the control of your own business operations. But if not caught early – for example with the help of insolvency risk services – you could find yourself trapped in a downward spiral of insolvency risk.
In particular, when insolvency is the result of something unforeseen, insolvency protection insurance safeguards your cash flow and considerably limits the damage of credit risk to your own company by getting you compensation in case of bad debts.
For example, market-leading trade credit insurers such as Allianz Trade, in addition to helping you avoid bad debts and compensating you if they happen, provide additional insolvency risk services as part of the trade credit insurance cover, such as.
1. Debt recovery, with the skills and experience needed to maintain an effective, on-going dialogue with debtors and their legal teams, no matter which country or jurisdiction they operate i
2. Predictive protection by helping you choose the right customers and the right markets to avoid bad debt in the first place, thanks to acute financial analysis.
3. In-depth market intelligence, providing you with 360-degree visibility on business sectors and impending difficulties.
Remember, swift reaction time is key. The ideal scenario is to identify and act on warning signs before your customer becomes insolvent. Insolvency protection insurance can mitigate customer insolvency risk, preserve cash flow and help you grow your business.