Basically, your credit insurance covers payment risk. From the moment of delivery – and billing – you are covered against non-payment from your customer. But what if your customer goes bankrupt, or the limit is revoked, even before you deliver? With pre-risk you are covered at least for the purchase value and in case of limit revocation you can still deliver with cover even though the limit is revoked.
Do you export to Germany and have you ever made payment arrangements? In the past (COVID) period not unthinkable. Should your German customer become insolvent within 4 years of this payment arrangement, you run the risk of a claim being made by the German insolvency administrator on all turnover from that payment arrangement. This is because under German law you are favored over other creditors. With the MODINT Branch Policy you can easily extend coverage against these risks.
Due to the many cost increases and ever-increasing pressure on cash flow, more and more manufacturers are asking for advance payment. But who says they can deliver and not go bankrupt in the meantime? With the MODINT Sector Policy it is possible to insure prepayments.
Source: MODINT Credit & Finance