Proper management of a company’s treasury is a must for finance departments, and the CFO must ensure that adequate levels of liquidity are maintained.
To be successful in this task, good decisions must be made, business operations must be monitored, planned expenses must be tracked and sometimes external resources must be used to help prevent related problems, such as flexible credit insurance.
Benefits of good treasury management
For each company, optimal cash management will bring different benefits. However, at a general level, we can identify the main benefits for any type of company:
- Reducing funds held in current assets, which are those accounts that have not yet been transformed into liquidity.
- Reducing as much as possible the risks related to credit sales.
- Limiting external financing and the costs associated with it.
- Increasing cash flow, which makes it possible to meet expenses and improve liquidity.
- Flexible credit insurance as a cash management ally
Cash management is vital for the financial health of a company and includes such decisive actions as the control of collections and payments, negotiation with banks and financial institutions and the management of risk coverage.
In the latter case, flexible credit insurance is one of the best allies to protect the commercial operations carried out by the company and the consequent collection of the invoices linked to them.
This type of insurance consists of a protection service against invoices that may not be paid on their due date. In the event of this happening, it is possible to notify a claim and the responsible entity takes charge of the collection management, thus preserving the relationship with the client and reducing the administrative resources that must be invested, as well as obviously having the possibility of recovering the debt.
With flexible credit insurance you will have greater liquidity guarantees and avoid the costs and inconveniences of non-payment.
Yndika and credit insurance tailored to today’s companies
Credit insurance is a financial protection resource widely used by companies all over the world.
However, the new needs of companies present this service with certain limitations when offered in its traditional format.
Some of the disadvantages of traditional credit insurance are as follows:
- It takes a long time for financial analysis of the company and subsequent approval of the insurance.
- Coverage must often be made for the entire client portfolio or, at a minimum, for all invoices of a specific client.
- There are numerous extra costs such as those related to the opening of the claim, the study of the company or those related to administration resources.
In this situation, Atlax 360 offers Yndika, a cloud platform and the flexible credit insurance service that is integrated and available to anyone who wishes to contract it.
Immediacy of the flexible credit insurance service
Because Yndika is integrated in real time with your ERP, it is possible to evaluate potential customers or risk invoices immediately, as well as request coverage at any time.
In fact, this insurance allows you to add uninsured customers without waiting, in just a few clicks and without changing the conditions.
Maximum flexibility at your fingertips
It is called “flexible credit insurance” because it can be adapted to the specific needs of each client.
For example, it is not necessary to insure the entire portfolio. We can insure only business transactions with a specific customer.
It is even possible to insure only certain invoices, because these are the ones we consider to be at risk of non-payment.
Moreover, this does not affect in any way the monitoring service offered by Yndika, as it sends us real-time notifications for any decisive changes in both insured and uninsured invoices.
Saving costs with flexible credit insurance
The extra costs associated with traditional credit insurance considerably reduce the profitability of this service for the company that contracts it.
For this reason, Yndika’s flexible credit insurance eliminates all costs linked to the traditional policy, such as the following:
- Classification and maintenance costs.
- Opening and claim file expenses.
- Recovery costs.
- Administration and other hidden costs.
- With flexible credit insurance you don’t have to worry about any of these, as only the corresponding premium is charged.
Moreover, it is applicable to any type of client, both micro-SMEs and the self-employed, large companies, multinationals, etc.
Flexible credit insurance is here to revolutionise the market and make this type of financial service available to companies of all sizes, always adapting to their needs.
The ATLAX 360 credit insurance service is provided by ESPISAN AGENCIA DE SUSCRIPCIÓN S.L., CIF B93742120 and number of Registro Administrativo de Distribuidores de Seguros y Reaseguros AS-0108, an agency of Great Lakes Insurance SE, a Munich Re company.