How does trade credit insurance work?

Prevention, collection and compensation. These are the three powerful pillars of a trade credit insurance. An Allianz Trade dummy trade credit insurance not only offers you insights about the dummy creditworthiness of your customers, we actively ensure that your overdue invoices are paid. Moreover, we compensate your unpaid invoices for example in the event of bankruptcy of a customer.
This has three tangible consequences:
You can immediately assess an existing or potential new customer based on accurate information
You can proactively protect your working capital and margins
You can choose the most reliable customers to grow sustainably

1  We analyse your customers and prospects

Assessing risks associated with customers constitutes a first important step in the protection of your transactions. It also offers an extra opportunity to increase the quality of your customer portfolio. Every day our specialised risk analysts scrutinise hundreds of economic indicators. This gives us insight into the economic, political, commercial and financial risks of your new and existing customers. The result is a permanent barometer of the financial stability of your customer portfolio.

2  Test the risk and request a limit

Before you do business, you naturally want to know whether it is a good idea to offer payment terms to a particular customer. All you have to do is request a limit evaluation via our online system. Based on our risk analysis, we will decide if we accept this limit fully, partially or not at all. The limit indicates for what amount we find it safe to deliver to this particular customer without pre-payment. At the same time, this limit is the amount for which you are insured if your customer should not pay. For certain products, you are insured by default up to an amount defined in advance per customer.

3  We monitor your customers in real time

As soon as this limit is approved – and that can often be done the very same day – you can focus on your customers while we cover the risks. If your customer´s financial situation changes, we inform you immediately and adapt the limit when necessary.

4  We take care of the collection of your overdue invoices

One of your customers has financial troubles and is not able to pay your invoices on time? Send him a payment reminder and a payment demand. Then our collection department will take care of the collection of the overdue invoices. You don´t have to do anything more.

5  We compensate you when your customer doesn’t pay

Does your invoice remain unpaid? Is your customer bankrupt? Then we compensate the unpaid invoice according to the cover percentage that we have defined together in the policy. In this way, you never again have to worry about the payment of any invoice whatsoever.