Agrifood industry

Credit insurance for the agrifood sector; the instrument to hedge risks of default with outstanding invoices.

Credit insurance agricultural sector

The agri- and foodsector are experiencing rapid growth. With enormous growth of export and new foreign sales channels, dutch companies within the agri- and foodsector are performing well. However, the agricultural sector keeps experiencing several risk factors. This sector depends on perishable goods. Moreover, organizations within the agri-sector are trading in meat, fish and dairy.

Taking out a credit insurance to hedge the risks of default within the agricultural sector is crucial. The agricultural sector is mainly dependent on the environment and the results of the production. What would it mean for your organization if the production would not have the desired effects, and if debtors overseas are not able to pay outstanding invoices anymore? Insufficient limits or inadequate working capital of your debtors could harm the cashflow of you organization. In a sector in which certainty is not natural, The CreditInsurers offer their clients expertise, certainty and knowledge. On this page, we would like to tell you more about a credit insurance for the agricultural sector.

What is a credit insurance?

A credit insurance is an insurance designed for companies and organizations who supply and deliver on credit. This insurance offers companies the certainty their realized turnover will indeed be achieved. In case of default, the credit insurer will pay for the outstanding invoices, according to the policy terms of the credit insurance. A credit insurance is an important part within the debtor management, and indispensable for export.

How well do you know your debtors? 

In a market with that many risks, it is of utmost importance to know your debtors financially. Are you informed about the financial developments of your debtors and the market in which they operate?
A credit insurance offers full access to this up-to-date information. Through a creditworthiness check, the credit insurer checks the creditworthiness of your current as well as your new debtors. From experience, we have learned that organizations have a sufficiently better grip on their debtor management. Additionally, outstanding invoices are usually paid faster.
Because of the credit insurance, companies know where to find threats and opportunities. A company can achieve a competitive advantage by checking the creditworthiness of the debtors. With a positive creditworthiness check, the company is able to make the payment terms more flexible. This works both ways; with a negative creditworthiness check, a company can choose to make the payment terms more strict as to prevent risks. More advantages of a credit insurance?

Do you want to know more?

Do you want to know what a credit insurance could do for your organization? Contact us for a free personal consultation without obligations. We would like to tell you more about a credit insurance for your business and we would love to offer you some expert advice.