Phillip Krinker

How to protect your company’s capital?

14 de Maio de 2018 Phillip Krinker 0 Comentários

To maintain a company’s financial health is one of the main concerns of every businessman. However, unforeseen circumstances may happen and impact your business. 

The credit granted by suppliers corresponds to double the amount provided by banks to finance their buyers.  Whereas the companies’ receivables account, on average, corresponds to 40% of their total assets. Late payment represents a capital cost, and the situation can be aggravated in an economic crisis scenario.     

But after all, is there any way to protect your company’s capital, even in times of recession and crisis?

The reply is ‘yes’, there is. Credit Insurance is among the possible solutions, and this alternative reduces the negative effects of unexpected circumstances, as it protects your business against non-payment of debts from commercial transactions, ensures that your invoices will be paid, and enables safe management of your commercial and political risks.   

To protect capital and minimize problems in the company’s balance sheet are challenges currently faced by many businessmen. Applications for judicial recovery are increasing more and more, and the demand for bank loan guarantees is also increasing.  

With respect to organizations that propose to expand their activities or diversify their businesses, the selection of business partners should be more rigorous. Such situations make Credit Insurance, and its benefits, even more important as a control tool for the receivables portfolio and risk management.        

Credit Insurance has existed in Europe for more than a century, and in Brazil it has recently gained strength on account of the unstable economic scenario, especially considering the significant increase in defaulting customers in the past few years.  

So why not learn more about Credit Insurance and all it can do to protect your company from such risks?

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