Insurance od receivables
Insurance od receivables means that your international trade receivables are insured against the risk of a foreign customer’s default.
Payment of your international trade receivables is also guaranteed if your customer does not settle their liability, and even in the case of their insolvency.
Subject of insurance within the international factoring service are only the international trade receivables.
We offer insurance of receivables upon prior verification of the foreign customer and up to the amount of the credit limit, which is determined on the basis of customer’s creditworthiness.
100% payment in case of customer’s default or their insolvency (in case of regular insurances this coverage is maximum 85%)
Insurance against one or more customers
(regular insurances require insurance against the entire customer portfolio)
Free limit verification (prices usually range from EUR 20 onwards)
insurance and financing
(insurance companies do not offer financing of receivables)
The factor is in charge of recovery of receivables (with insurance agencies, the insurant must usually recover them)
What is the process of insurance of receivables?
1. The company would like insurance against default of a foreign customer.
2. The Prva finančna agencija (PFA) checks the possibility of acquiring a limit for payment insurance with the import factor abroad.
3. The import factor replies to the PFA: 100% approval/partial approval/refusal of limit for payment insurance.
4. The company supplies goods/performs services and issues an invoice with agreed maturity.
5. The company sends this invoice to the PFA.
6. The customer settles the invoice with the import factor at its maturity or within the agreed time limit.
7. In case of late payment, the import factor urges the payment from the foreign customer.
8. After receiving payment from the customer, no later than 120 days after maturity of the invoice, the import factor makes a payment to the PFA.
9. The PFA pays the company the value of the invoice once we receive it from the import factor
In a case of foreign customer’s default, we pay 100% of receivable’s value to the company when it is 120 days past due.