Protect Your Receivables with Trade Credit Insurance

Coface insures the trade receivables of Indian SME that produces electronic parts. This company, which has genuine know-how and an excellent reputation, is on the verge of obtaining its first major contract with an international branded manufacturer of electric appliance which requests for 150 days credit terms.
 
After an in-depth analysis of this manufacturer’s situation, Coface warns the company of the manufacturer’s financial losses in recent years. The CEO, with input from the plant manager and the head of sales for large accounts, is nevertheless prepared to proceed with this order, which alone would increase the company’s annual sales by 5%.
 
After further reflection, the Chief Financial Officer decides to request a meeting with a Coface analyst, who convinces him emphatically of  serious difficulties in cash flow with the prospect due to non-payment of its largest importer in Italy. In the end, the company declines the deal and leaves it to a competitor. That competitor is never paid by the manufacturer, which files for bankruptcy just a few weeks after the meeting with Coface.