Cash flow is important for businesses. But what to do if the customer doesn’t pay? Commercial credit insurance protects you against your own financial difficulties.
Exploding costs on the energy and raw materials markets, high inflation and the acute shortage of staff are putting a huge strain on the budgets of Austrian companies. In 2022, the number of company bankruptcies will have increased by more than half compared to the previous year. And similar numbers can be expected for 2023.
Defaults increase the risk of insolvency
A tense economic situation that can quickly lead to supplier deals falling through and your own customers suddenly no longer paying the invoices issued – because they themselves are experiencing a financial bottleneck or even had to file for bankruptcy. Such a payment default hits small and medium-sized companies particularly hard and can sometimes threaten their existence. Suddenly you can no longer pay your own bills and your staff. The risk of getting into financial difficulties increases.
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With a Commercial Credit Insurance protect your company quickly and efficiently against the loss of receivables and thus ensure secure cash flows.
Die R+V General Insurance Ltd is one of the leading credit insurers and is on Trade credit insurance for small and medium-sized businesses specialized. Next to one credit check R+V will also take care of that Compensation for bad debts and secures the liquidity and creditworthiness of the company.
Additional Information: R+V
Commercial credit insurance provides protection
Commercial credit insurance can prevent this “domino effect” and protect against possible payment defaults. In short: it pays when the customer can no longer pay. In addition, the insurer checks the creditworthiness of potential clients in advance – so that these defaults do not occur in the first place and companies can protect themselves in advance.
Philipp Dierig is an expert in commercial credit insurance and has been working in the insurance industry for over 30 years. In an interview with Lisa Schöttel, he explains why every yoghurt that we take off the supermarket shelf is insured, what the consequences are for companies if customers don’t pay and why trade credit insurance is an efficient pension instrument, especially for small and medium-sized businesses.
To person
Philipp Dierig studied business administration with a focus on insurance and has been active in the Austrian insurance market since 2000. He is considered an expert in commercial credit insurance and has been in charge of the credit and suretyship insurance division at R+V Allgemeine Versicherung in Austria since 2013.
