Do you sell goods or provide services on account? Swiss companies give their customers credit on a daily basis through payment periods - and they do so interest-free and without the guarantees that a bank would ask for in return. Late payments limit your liquidity and can even threaten your existence. AXA Credit Insurance gives you more financial security: We step in as a credit insurer as soon as a payment is missed.
Buy now, pay later: Buying on account is commonplace. Whether B2B or B2C, many companies supplying goods or providing services in Switzerland pay in advance for their customers and therefore take on a major risk. However, if material and staff costs have already been incurred, but payment is not received, this can quickly affect the financial existence of companies, especially smaller ones. Credit insurance is a simple and effective way of safeguarding this existence.
From a legal perspective, a payment period is a voluntary arrangement granted by the supplier to its customers. In competition terms however, granting (long) payment periods can often be the decisive advantage over rivals when it comes to winning an order. This is because the principle of goods or services against payment in cash applies, which is why the seller has very few legal options if payment is late or not made at all. Of course, tools such as structuring the purchase contract, reminders and debt enforcement are helpful to avoid outstanding claims, but they cannot provide absolute security. You will only have this if you transfer the risk of financial losses from business to an insurance policy.
Guilt by association: Every third bankruptcy is due to a domino effect. And in economically uncertain times in particular, the insolvency of your most important customer can also have far-reaching consequences for your business. To ensure that unpaid claims do not threaten your business's existence, you should actively seek to reduce default risk. As a credit insurer, we cover your business activities in Switzerland and abroad with customized solutions. From creditworthiness checks on your new and existing customer to collection and payment of outstanding invoices.
Deliveries on credit form the basis of many business relationships and are also used to gain an edge when competing for new customers. We offer comprehensive insurance protection so that as the supplier, you do not fall into a financial crisis through no fault of your own by granting this type of supplier credit.
Guaranteeing liquidity: AXA covers all unpaid claims arising from the sale of goods and services on account and compensates you for outstanding invoices so that your business remains liquid at all times.
Protection in Switzerland and abroad: We protect your business operations in Switzerland and/or your export business, including domestic and foreign subsidiaries.
Credit monitoring: Credit checks on all your new customers and permanent credit monitoring and alerts of your customer base are part of credit insurance.
Claims management: No more debt collection workload: AXA takes over responsibility for collection in the event of a bad debt and represents your interests until proceedings are completed.
Insurance coverage starts: In the event of custom-made products, default risk begins as early as the production stage, not just after delivery. You can choose when insurance coverage starts.
Increase in creditworthiness: Liquidity guaranteed by AXA improves your company's creditworthiness: Banks give cheaper business credit for planned investments.
A customer's insolvency can cost your company dearly. You pay a particularly high price if you are unable to meet your own obligations on time because of outstanding receivables and you are suddenly threatened with bankruptcy. Accounts receivable insurance covers invoices you have issued that have not been (or cannot be) settled by your debtors, provided a debtor limit has first been applied for and granted by AXA. As an insurer, we protect your business against the financial consequences of bad debts with accounts receivable insurance.
Compensation: In the event of suspected or proven insolvency (e.g. start of bankruptcy proceedings), we pay 80% of your invoices up to a potential limit of CHF 100,000. You can specifically insure only selected debtors, regardless of whether they are business or private customers in Switzerland or in neighboring countries.
Short waiting time: To guarantee your liquidity, compensation is guaranteed to be paid three months after the claim has been filed.
With credit or commercial credit insurance, you insure worldwide losses you suffer as a result of suspected insolvency and insolvency of all your B2B business customers. Credit insurance is often a good idea to gain a competitive advantage. For example, if you offer your business partners more attractive purchasing conditions than your competitors and would like to guarantee your liquidity at the same time . Or if your business depends financially on a small number of customers and late payment could endanger your cash flow. Credit insurance is suitable for businesses that have an annual turnover of at least CHF 2 million and is mainly aimed at corporate customers.
With accounts receivable insurance, you have the option of selectively insuring certain customers (as well as business partners and private individuals) in Switzerland and in neighboring countries (up to CHF 100,000 for all outstanding invoices with this debtor). The insurance is suitable for companies with an annual turnover of up to CHF 9 million. Corporate and private customers can be insured. With accounts receivable insurance, you buy insurance cover for individual customers through a credit limit. This limit is designed to cover all outstanding invoices and is valid for a specific period of between three and twelve months.
Even long-term business relationships are not immune from bad debts. Deteriorating solvency often creeps in gradually with long-term business partners. Because of the good relationship, late payments are accepted, until it's too late. Making an objective assessment is that much harder as a result and that much more important, as this assessment is made by a neutral party.
The level of premium is based on individual factors of your business model, such as turnover volume, business sector, outstanding invoices or prior losses and is calculated as a single-digit thousandth of your turnover.