Credit insurance in Poland is a product that is constantly evolving. Many large and medium-sized enterprises insure receivables for years, or at least use the credit management tools such as credit reports, monitoring and recovery of receivables offered by external specialized companies. Meanwhile, in the current changeable economic reality credit insurance is an important product for the smallest companies, where no payment for the receivables from customers can put in a dilemma prospects of the business.
Standard credit insurance products operating on the Polish market are also available for those smallest companies, and insurance acquisition costs which are the direct reach to potential Customers and time-consuming process of the tender preparation and finally the successful conclusion of the insurance contract, and then the service of such policies, cause that in many cases, the cost of such insurance for the smallest firms is too large financial burden. In Western Europe, where credit insurance has much longer tradition than in Poland, for some time there are automatic simple solutions for the smallest businesses that allow to conclude the insurance contract online. It should be stressed that such solution is possible for very small companies, with a small amount of contractors and simple organizational structure.
Such simple solution is applied, among others, by Coface in France which is offering their product under the name EasyLiner, it provides monitoring of recipients in order to eliminate the recipients risk and at the same time recovering of unpaid invoices, and the compensation in the case of non-payment. Coverage can be achieved in just a few minutes, setting up online the best solution for you and cover your customers by the insurance. If in doubt, the Coface enables entrepreneurs the contact with a dedicated helpline.1
Euler Hermes, another global receivable insurer also offers, among others, in the UK a simple solution for small companies. Simplicity is a product that allows online insurance coverage. An interesting solution is a possibility to choose insurance for your customers such as:
Receivable insurance without verification by the insurer – in this case, because of the high risk of damage, the contribution is very high, at the level of 40%
Receivable insurance with insurer verification – in this case, you should check what rating was given by the insurer to the recipient . If the recipient has a high rating, the contribution can be as high as 10%, with a very low self-rating of the share remains at 40%2
Both Coface and Euler Hermes intend to implement above mentioned products on the Polish market later this year.3 The fact that these products will give the smallest businesses quick and the most important effective way to insure their transactions certain. Let’s hope the price will prove to be adequate for the automation of handling with these products.