D-1-1- Credit insurance : a technique of payment


Payment processing is one of the main preoccupations of companies with international transactions. Doing business is important, but compensation is essential. Esandis offers you free training space dedicated to international transactions, and all the skills you need to become an export or import manager. Our objective is to provide you an understanding of the importance of the payment component of an international transaction.

1-1-1- Credit insurance: definition

Credit insurance can be defined in a few words, but first it's necessary to divide credit insurance into two groups: Export credit insurance (supplier warranty) and buyer's credit warranty. Each has its own advantages and drawbacks.

Credit insurance is intended for international transactions in both exporting and importing. It's coverage offered by insurance companies to protect against unpaid bills coming from SME and major companies.

1-1-2- Credit insurance: the diagram

Credit insurance is no exception to the rules of international transactions. The process is simplified with this diagram, but it is complicated to implement .



1-2-3- Credit insurance: procedure

There are many steps associated with this funding or payment mode, such as confirming the applicant, the exporter, has met certain conditions. The applicant will need to complete a comprehensive information form that provides details about the company and its needs.

Service providers must then set up an audit of the client's company to identify its modes of operation and propose corresponding credit insurance. This audit will need to identify if the company can withstand a period of higher compensation.

1-2-4- Credit insurance: service providers

There are two groups of service providers specializing in credit insurance: public agencies and private operators (companies).

1-2-5- Credit insurance: role of the insurer

The role of the insurer is going to be to extend or deny insurance. Credit insurance is based on several simple principles. One of these principles is the principle of global credit insurance (global coverage). This principle necessitates that funding companies implement systems of self-management.

1-1-6- Credit insurance: role of the exporter

For all credit insurance, the exporter will need to be aware of the coverage amount, the credit limit and what risks are covered by the insurance.

1-1-7- Credit Insurance: compensation payment

The compensation is significant relative to a small insurance premium.