For any business, default represents one of the greatest dangers to be faced. Prevention is always the right strategy to follow, but sometimes it is inevitable that a customer will incur an unpaid debt with the company.
In fact, debt due to non-payment tends to accumulate from different origins, which complicates both collection management and the possibility of maintaining an appropriate cash flow and liquidity for optimal company growth.
Atlax 360 has developed solutions such as credit insurance to increase protection against payment defaults and improve debt collection.
How default affects a company
Before delving into the benefits that credit insurance offers in terms of protection against non-payment, it is important to be clear about the serious consequences that can result from the accumulation of debt.
For each company, these can have different effects, but in general, defaults can cause problems such as the following:
- Reduction of the company’s liquidity, as expected payments do not occur when the due date arrives.
- Limiting growth, since with less liquidity it is more difficult (and risky) to face important B2B operations or to open new business lines.
- Increasing financial costs, as it is sometimes necessary to apply for loans or delay payments with the consequent increase in interest, as it is not possible to meet the expected expenses.
- They put the company at risk, as the accumulation of debts from selling on credit can threaten its practical continuity.
- Generation of commercial tensions, as amicable collection is not easy.
- Giving a bad credit image to the company, which may result in greater difficulty in obtaining its own credit or even affect relationships with suppliers and creditors.
Credit insurance with Yndika to protect against default
Credit insurance is the best protection against non-payment that you need and with which your company will be able to reduce the risk of the consequences described above.
In addition, Atlax 360 has developed insurance solutions adapted to the current needs of companies of any size and scope, both nationally and internationally.
With the flexible credit insurance, taking out the policy is very simple and 100% online. No waiting, no additional costs and no paperwork, so you can take advantage of its benefits immediately.
Flexible credit insurance allows you to set up your policy and manage it efficiently, as a fully customised solution to your company’s needs.
It allows you to protect and insure only those customers you deem necessary. Paying a premium for the invoices that are actually covered and avoiding the consequences of non-payment.
In addition, with Yndika cloud platform you can control and optimise both the insured portfolio and the rest of your customers and operations, even if they do not have credit insurance.
We also recommend that you take advantage of our customised risk indicators RIIM (Immediate Risk of Non-Payment), ICP (Payment Behaviour Index) and LCA (Atlax 360 Credit Limit), in order to prevent possible debt more effectively.
With this solution, your company will enjoy a reduction of administrative tasks linked to customer follow-up and collection management, as well as improving the company’s credit quality.
How a debt collection process works with credit insurance
In the event of non-payment, the credit insurance takes advantage of all the resources available from Atlax 360 to carry out an optimised debt collection process.
First of all, by means of alerts and notifications of unpaid insured invoices and the start and end dates of the claim period.
Notify your account manager at Atlax 360 of the corresponding non-payment. With the easily accessible information from our cloud platform, you can prove the existence of the business transaction and the due date of the unpaid debt.
With our debt collection specialists, you can pursue amicable or, if required, judicial or insolvency proceedings.
You will be kept directly informed at all times about the resolution of the claim and its progress. In any case, your company will not have to allocate any resources to this and the business relationship with your customer base will not deteriorate.
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.