To create a company within the borders of the Hexagon or to develop its activity abroad, it is to be exposed to the same risks of unpaid. Credit insurance helps guard against this kind of inconvenience.
The master uncertainty
For example, you can take a tour of the Coface site to find out in detail the terms and conditions for subscribing to credit insurance. As an entrepreneur, you already show certain courage: you are a job provider who is exposed to the risks of competition and market difficulties.
However, probably one of the biggest threats to your business is delinquency. In the heart of the uncertain economic environment that we have been going through for several years and which continues to this day, unresolved sales can prove to be a real fundamental problem. This can slow down your business, and even directly affect the lifespan of your business!
In France, you may well come across a customer who is unable to honour his bill. It is not something that you can predict or control. It would be a shame to have to review your development projects under the pretext of an event that is not your responsibility … If this happens to you, you can react quickly by following the explanations provided by this link.
But the observation is the same if you export your activity outside the French borders. In particular, you may be faced with a lack of information concerning the economic, social and political context of the country where you wish to set up your subsidiary. Under these conditions, deciding to develop your company is like gambling your professional future on a roll.
Since you don’t want to leave anything to chance, purchasing credit insurance is probably the best solution for you. This has a number of advantages, which are not limited only to risk prevention.
What advantages?
Obviously, the last resort in resolving an unpaid debt lies in the compensation for losses due to unpaid invoices. If you happen to have this problem, having coverage will help you limit the damage and get a refund. It is therefore a good way to avoid bankruptcy if the impact of the unpaid amount is significant.
But above all, credit insurance allows you to continuously monitor the financial situation of your customers. You don’t risk getting a customer to sign a contract you know won’t be able to honour their payments.
On the other hand, the information we receive on a daily basis is not always adapted to the expectations of an entrepreneur. With this protection contract, you will be put in contact with analysts and financial experts who know the field.
These professionals will be able to keep you informed of the socio-economic conjectures specific to the countries in which you are thinking of exporting your activity. Ideal for not investing blindly! You will be able to plan the development of your company knowing where you are going.
Solving the problem of uncertainty and lack of information may not be enough to guard against delinquency. Sometimes, despite everything, customers may find themselves unable to fund the amount they owe you, in France and abroad. Having credit insurance will allow you to use collection services.
The collection is not a recent practice, it dates back to antiquity and the beginnings of trade. It’s a process that involves a certain amount of tact and negotiation. Only professionals accustomed to this kind of exercise can achieve effective results. Especially when bad payers live abroad!
