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Trade credit and surety insurance
We are the specialised division in providing financial and operational and business risk solutions from the insurance sector.
In short
What is credit and surety insurance
Credit insurance protects the company against customer default: it classifies the risk of each debtor before selling, indemnifies the insured percentage of the unpaid invoice, and manages recovery. Surety insurance is different: it guarantees to a third party that the company will fulfil an obligation and replaces the bank guarantee without consuming bank risk or immobilising working capital lines.
Advantages
Advantages of credit and surety insurance
Credit insurance not only covers non-payment: it changes how you sell and how you finance.
Extend term and volume with criteria
With prior classification, you can extend term and volume to clients you currently reject out of prudence. The cover turns operations you were passing up into business.
Free up bank lines
The surety replaces the guarantee without consuming bank risk or pledging. This freed capacity is allocated to working capital and investment, not immobilised guarantees.
Better financing cost
The bank interprets a balance sheet differently when the working capital is protected. The practical consequence is more credit limit granted and a lower spread on advance lines.
Market intelligence included
The insurer's classification tells you which clients are deteriorating before it becomes evident in collections. This is commercial information that cannot be purchased elsewhere.
Profile
Who we work for
Companies with credit sales
Companies that invoice on terms and concentrate a significant part of their turnover in a few clients.
Exporters
Profiles with commercial and political risk in markets where debtor information is limited.
Construction and concession companies
Companies that must present tender, execution, and maintenance guarantees in each award.
Financial management
Managers who want to free up bank lines and improve working capital financing conditions.
Scope
Main covers of credit and surety insurance
- Insolvency by law (bankruptcy) and in fact (prolonged non-payment) of national and foreign clients
- Prior classification of debtors and continuous monitoring of their solvency
- Amicable and judicial recovery management included in the service
- Political and transfer risk in export operations
- Surety: bid, performance, advance, maintenance guarantees and guarantees before administrations
- Technical guarantees and guarantees required by sectoral regulations
The JORI method
How we work
Risk analysis
We study the activity, assets, and plausible scenarios. Without that diagnosis, comparing policies is comparing prices of different things.
Programme design
We define covers, limits, deductibles, and acceptable exclusions. We decide what is transferred to the insurer and what is consciously retained.
Negotiation with the market
We present the risk to the insurers we work with and negotiate terms. We are independent: we do not belong to any company.
Support and claims
We review the programme at each renewal and, when a claim occurs, we act as your technical representative with the insurer until payment is received.
Frequent doubts
Most frequently asked questions about credit insurance
What percentage of the unpaid invoice is collected?
It is usually between 80% and 95% of the insured credit, depending on the modality and type of debtor. The remaining percentage remains deliberately at the company's expense, to keep the incentive to sell with criteria aligned.
Do I have to insure my entire client portfolio?
Global credit policies require the entire portfolio to be provided, precisely so that the insurer does not only receive the bad risk. There are selective or excess of loss modalities for large portfolios, more expensive in unit premium but more flexible.
How does surety differ from a bank guarantee?
Surety is insurance, not a banking risk operation: it does not consume a credit line nor require pledging. The beneficiary obtains the same guarantee on first demand, and the company maintains its financing capacity for working capital and investment intact.
What happens if the insurer refuses to classify a client?
It is valuable information: it means their analysis detects deterioration. You can continue selling to them assuming the risk, but without cover. In practice, this refusal often anticipates bankruptcy by months.
How long does it take for a credit claim to be paid?
In insolvency by law, after proving the bankruptcy. In prolonged non-payment, after the agreed period, which usually ranges from ninety to one hundred and eighty days from the due date. During this period, the insurer is already managing the recovery.
Does credit insurance help to finance better?
Yes. An insured portfolio is a much higher quality collateral, which facilitates discounting and non-recourse factoring under more favourable conditions. It is one of the effects most valued by financial management.
Credit and Surety
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