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How to protect your business

7 tips for effective credit management

A supplier credit that you grant to your customers not only opens up business opportunities, but is also a major risk that threatens your existence. What happens if your customer doesn't pay? Then the cash flow is interrupted and your liquidity is at risk. In the worst case, a customer's non-payment also threatens payment difficulties on your side. Payment defaults therefore often lead to insolvencies and subsequent bankruptcies.

Credit insurance therefore protects you in the growth of your business.


Even a small loss can cause great danger.


When you trade domestically, you are often tempted to think you know your customers well and can trust them. However, it is often not in the hands of your business partners how their business will develop. Economic and political risks can affect all industries.


Sometimes the cause is not even the fault of the company. Consequential effects from events along the supply chain can cause situations to spiral out of control, resulting in payment defaults.


A bad debt rips a bigger hole in the cash register than the invoice amount!


And you? Do you know the impact of an unpaid invoice?




How does the cooperation with a credit insurance company work?


  • You contact us.
  • We contact you immediately and arrange a personal meeting.
  • You then discuss with our experienced account managers which receivables you want to protect against default. For example, do you primarily deliver domestically or do you want to insure your export business? Other points in the initial discussion: Who are your customers at home and abroad? Have you already had experience with bad debt losses?
  • In the next step, we will then prepare an offer for you. There are various options here, depending on the size of your company. By the way, the price for your credit insurance always depends on the specific risk you want to insure.
  • Accept our offer, sign the contract. From then on, our systems such as the customer portal and our CofaNet Essentials-Plattform are at your disposal. In addition, our Account Managers will help you in word and deed.


Our areas of Expertise

  • Trade Credit Insurance is Cofaces’ main business. Our service is more than indemnifying losses - we provide claims prevention and assistance in developing a profitable client relationship.
  • Information is about gathering relevant and up-to-date information on buyers and their environment. We support our clients in their risk business decisions.
  • Debt Collection is a debt recovery service to non-insured and insured companies.
  • Single Risk: we provide tailor made policies for each situation or project size to be covered.
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