Credit Insurance protects companies and financial institutions against customer defaults. In simple terms, credit insurance would ensure that the policyholder is paid for the unpaid credit balance from the sales made to customers.
Credit Insurance policy is a guarantee that the customers will be paid, subject to the terms and conditions of the policy, for the merchandise shipped or services rendered to their customers. By assuring payment, credit insurance can strengthen a company’s balance sheet and enhance the borrowing power helping companies to grow their business
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