Wat is Atradius?
What is the meaning of Atradius?
It is the credit insurance arm of Grupo Catalana Occidente (GCO.MC). Credit insurance, bonding and collections products help protect companies throughout the world from payment risks associated with selling products and services on trade credit. In 2021 the company had revenues of EUR 2.1 billion.
Who are the top three trade credit insurance providers?
Euler Hermes is the world's number one credit insurance provider. Coface, a wholly owned subsidiary of Natixis, the financing, asset management and financial services arm of the BPCE Group. Coface has the largest direct presence in the world. Atradius, a merger between NCM and Gerling Kreditversicherung.
What type of insurance is trade credit insurance?
Trade credit insurance is a risk management tool that protects your business from bad debts. It insures your accounts receivable and protects your business from unpaid invoices caused by customer bankruptcy, default, political risks, or other reasons agreed with your insurer.
What is covered by credit insurance?
Credit insurance covers your loan or credit card payments in the event you become unable to pay due to a financial shock like unemployment, disability or death.
How does Atradius work?
We provide trade credit insurance, surety and collections services worldwide through a strategic presence in more than 50 countries. We have access to credit information on over 240 million companies worldwide and are able to use this information to help our customers manage trading risk.
Where is Atradius from?
In Germany, Atradius' roots stem from Gerling-Konzern Speziale Kreditversicherung (Gerling Credit), which was established in 1954 as the credit insurance arm of the Gerling Group. Gerling Credit operated solely out of Germany until 1962 when it opened its first international branch office in Switzerland.
Why do you need trade credit insurance?
Trade credit insurance provides cover for businesses if customers who owe money for products or services do not pay their debts, or pay them later than the payment terms dictate. It gives businesses the confidence to extend credit to new customers and improves access to funding, often at more competitive rates.
What are the five types of credit insurance?
There are five types of credit insurance; four for consumer credit products and the fifth for business. These are: 1) credit life insurance, 2) credit disability insurance, 3) credit unemployment insurance, 4) credit personal property insurance, and 5) trade credit insurance/family leave or leave of absence insurance.
What are the benefits of trade credit insurance?
Trade credit insurance helps businesses to safely sell more to existing customers or expand to new customers, that may otherwise have been deemed too risky, knowing they are insured should the customer not pay their debts.
What is an example of trade credit?
For example, if Company A orders 1 million chocolate bars from Company B, then the payment terms could be such that Company A has to pay within 30 days of receiving the order. This arrangement between the two companies is generally known as trade credit.
What are the three types of credit insurance?
Key Takeaways. There are three kinds of credit insurance—disability, life, and unemployment—available to credit card customers.
Do insurance agents know your credit score?
A federal law, the Fair Credit Reporting Act (FCRA), states insurance companies have a “permissible purpose” to look at your credit information without your permission.
Why does my insurance company want my credit score?
Insurance companies argue that there is a correlation between clients who show financial responsibility and clients who prove to be low risk. So, if a client has a high credit score, they will be deemed less likely to make frequent or serious claims and may receive a lower premium.
Why are insurance companies checking my credit?
Car insurance providers will look at your credit report when you compare quotes to check your details. This is so they can check you are who you say you are – and to lower the risk of fraud. And, if you choose to pay monthly rather than annually, they'll also do a full credit check.
Does trade credit have to be paid back?
Unlike a loan from a bank, trade credit is usually interest free – which means a business only needs to pay back the amount equal to the value of the goods they purchased without any additional fees.
What are the risks of trade credit?
What are the main disadvantages of trade credit?
- Need for credit management.
- Risk of late payment fees.
- Potential supply chain complications.
- May affect creditworthiness.
- Some suppliers may refuse credit to start-ups.
- Expensive if payment date is missed.
What are the 7 main types of insurance?
The types of insurance are Life Insurance, Car Insurance, Health Insurance, Two Wheeler Insurance, Home Insurance, fire insurance, marine insurance, and Travel Insurance, etc.
What are the 3 types of credits?
The different types of credit
There are three types of credit accounts: revolving, installment and open. One of the most common types of credit accounts, revolving credit is a line of credit that you can borrow from freely but that has a cap, known as a credit limit, on how much can be used at any given time.
What is another name for trade credit?
Trade credit has also brought about new financing solutions for sellers in the form of accounts receivable financing. Accounts receivable financing, also known as invoice financing or factoring, is a type of financing that provides businesses with capital in relation to their trade credit, accounts receivable balances.
What is called trade credit?
Trade credit means many things but the simplest definition is an arrangement to buy goods and/or services on account without making immediate cash or cheque payments. Trade credit is a helpful tool for growing businesses, when favourable terms are agreed with a business's supplier.
Who uses credit insurance?
Credit insurance is a type of insurance policy purchased by a borrower that pays off one or more existing debts in the event of a death, disability, or in rare cases, unemployment.
Who buys credit insurance?
In this instance, the insurer could pay up to 90% of the insured debt and the collection expenses.
…
Industries where credit insurance is important:
- Agriculture & Horticulture.
- Construction.
- Financial services.
- Food & Drink.
- Manufacturing.
- Oil & Gas.
- Paper & Printing.
- Recruitment.
What is a good credit score?
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
Can you be turned down for insurance because of your credit score?
Some state laws prohibit insurance companies from refusing to issue you a new policy or from nonrenewing your existing policy based solely on information obtained from your credit report. Most insurance companies using credit information will include it as a factor in determining your rate.