The full range of risks your business may face can now be covered by Chesneau’s insurance solutions.

6 fields of expertise : Trade credit insurance, Factoring, Surety bonds and guarantees, Business intelligence, Debt collection, Management solutions for the customer's credit.

WHY SHOULD CONSIDER TAKING OUT TRADE CREDIT INSURANCE ?

Companies are currently operating in a very unstable geopolitical context, both in Europe and the rest of the world. They are exposed to inflation, and increasing costs of raw materials and energies. Companies’ treasuries are impacted as payment periods are extending.

In addition, special allowances implemented by the French government have ended and the “PGE” (i.e. loan secured by the government) must now be reimbursed.

The consequences may be hard to overcome for you and your clients and a customer default can have a significant impact on your profitability.

It is important to take out trade credit insurance adapted to your business to ensure protection against debtor default.

The trade credit insurance solution will allow your business to transfer (to an insurance company) a risk that may represent 25% to 30% of your balance-sheet assets.

KEY FIGURES

30% of bankruptcies are caused by a default of one or several major customers.
600,000€ is the additional turnover that your business should generate to compensate an outstanding debt of 15,000€ with a 2.5% margin.

 

THREE TOOLS AT YOUR DISPOSAL

PREVENTION OF NON-PAYMENT RISK

This involves evaluating and monitoring the financial condition of companies beforehand. A trade credit insurer covers commercial and political risks.

DEBT RECOVERY

If your client is unable to pay, the amicable and legal settlements of disputes are borne by the trade credit insurer.

COMPENSATION FOR UNRECOVERED DEBTS

In case of unrecovered debts at the end of the waiting period determined by the insurer, the loss is compensated as per the percentage defined in the policy.

 

GOING FURTHER…

ACCOUNT RECEIVABLE FACTORING

Factoring is a financing tool for companies: it is a way of receiving a cash advance of the payments owed by corporate clients before the due date. This financing solution uses your outstanding invoices as collateral.

As part of a factoring agreement, the company receives a cash advance and transfers the management of its trade debts collection and receivables to the factor.

There are various factoring solutions depending on the type of industry or the needs of companies.

SURETY BONDS AND GUARANTEES

A surety bond is a guarantee from a financial institution to compensate the beneficiary in case of failure from the contractor to meet contractual or legal obligations.

Insurers’ solutions can be used as an alternative to bank bonds so that your credit lines will not be affected.

Different types of guarantees:

  • Market guarantees often called contractual: construction, manufacturing.
  • Legal guarantees: home builders, environmental, customs, excise (wine/spirits), food-processing, and temporary work.

 

OUR FIELDS OF EXPERTISE

Chesneau VIE - Protecting employees
Chesneau IARD - Protecting assets
Chesneau Assurance-crédit - Protecting and financing accounts receivable
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