One of the most significant bad debt risks faced by a company is the domino effect. Companies often argue that they have dealt with their customers for years or that they do not feel there is any risk. The greatest risk however is that their customer will suffer a significant bad debt and will not survive as a consequence.

Credit Insurance is the protection against the risk of non-payment for the provision of goods and/or services supplied from one business to another on credit terms.

Non-payment usually arises when the customer becomes insolvent, but can also arise because the business simply has insufficient funds to pay its debts, often referred to as “Protracted Default”.

Credit Insurance is suitable for any business selling goods or services on credit to other businesses. It is also suitable for companies seeking a credit management solution that includes credit checking and debt collections, companies seeking to grow sales in a secured manner or those seeking support for finance.

G.A.P Vassilopoulos through their well-established relationship with the largest and most respected International Credit Insurers’ can provide Credit Insurance policies for all scopes of Cyprus based businesses.

The main advantages of Credit Insurance:

• Helps grow domestic and worldwide sales in confidence     
• Maintains cash flow, profitability and protects budgets and business plans   
• Prevents losses before they occur   
• Protects investors and stakeholders   
• Protects the company’s P&L and Balance Sheet   
• Potentially reduces and quantifies bad debt provisions   
• Facilitates and improves finance   
• Improves internal credit management and credit decisions   
• Helps cut down internal management costs   
• Protects against bad debts