What is credit insurance?
Credit insurance is an insurance product intended to protect businesses from losses due to non-receipt of a payment from customers in the local market or abroad, as a result of economic difficulties or political reasons outside of Israel.
In a constantly changing business environment, the most common payment method between companies is the open account method in which the supplier grants the customer credit days for payment after the goods or services have been supplied. However, there is no way to ensure that on the due date full payment will be received as agreed. Credit insurance assists in dealing with this uncertainty and ensures that the payment will be received, even if the customer reaches a state of insolvency, goes into cash flows difficulties or experiences a political event which does not enable him to transfer the money from his country.
In addition to the risk hedging benefits, credit insurance is also a service for managing credit risks. Our professional analysts will continuously examine and monitor your customer portfolio using in-depth information regarding the amount of credit recommended for every customer. This service assists in taking significant decisions in the sales process, expanding operations and penetrating new markets
Credit insurance with ICIC has many advantages:
- Security – protecting cash flow and the Company's financial balance sheet.
- Professional credit management – thanks to the considerable know-how that ICIC has accrued over many years in the field of managing credit risks.
- Personal relationship – a personal adaption of the policy tailor made to the Company's requirements.
- Innovations – unique solutions to credit risks that the company confronts.
- Peace of mind – the professional and experienced team which will provide advice and assistance in sharing credit risks and in the collection processes.
- Financial strength – insurance with ICIC will assist the Company to expand its ability to finance working capital, on the basis of ICIC's strength and its relations with banks and financing bodies.
- Increasing sales – thanks to the sharing of risks with ICIC and the valuable information ICIC can provide.
- Operative convenience using ICIC's online system, it is possible to access the database of insured credit operations from anywhere in the world.