Why take out credit insurance?
Prevention: You will “monitor” your customers and track their debt ratio through risk analysis.
Indemnification: The insurer will indemnify for losses suffered upon the debtor’s insolvency.
Recovery: The non-payment activates the mechanisms for the recovery of the credits that have not been collected, with the insurer carrying out the procedures, assuming the costs and management to recover the debt.
Political risks, obtain coverage as a Spanish company that invests abroad through the creation of a foreign company; the total or partial acquisition of an existing foreign company; or participation in the capital increase of the foreign company or in its equity. The risks of expropriation, confiscation, nationalisation, etc., political violence, transfer and lack of convertibility, or non-fulfilment of commitments by foreign public authorities/entities are covered. Insure risks during the construction or execution phase as a consequence of:
- Work risk: termination of contract, refusal to certify, non-payment of certifications, non-payment of credit (deferred payment)
- Risk of seizure or non-repatriation of the machinery pool.
- Risk of failure to transfer working capital to Spain. Non-payment of an export contract or unjustified termination of a contract: obtaining financing by discounting the collection rights of a contract. It can designate the discounting bank as beneficiary, transferring to it the right to receive compensation in the event of non-payment.
- Risks arising from civil works operations: Works Insurance for companies that carry out operations in the provision of services (construction works or works, assemblies, etc.) abroad”.