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  1. #1

    So What Is CoFace Credit Insurance? and How can it help me lend more with less risk?

    So, what exactly is CoFace Credit Insurance?

    CoFace Credit Insurance is the insuring of a client’s account receivables from the risks of bankruptcy, slow pay, and credit risk. The insuring process is conducted by reviewing your client's top 15 customers. The review process focuses on consolidated financials, payment ratings, company age, location, line of business, court rulings, trade references, and industry trend behavior. All of these items factor into how much insurance coverage will be extend to a specific customer. Once that insurance coverage number is established your client will be protected from their customers going bankrupt, or slow paying them for the term of the policy, up to the limit of coverage approved.

    Example: Let's say your client does $300K worth of business to Company A and they request credit insurance to cover their outstanding receivables to Company A. CoFace Credit Insurance would underwrite Company A; depending on the outcome of underwriting; 1 of 4 scenarios occurs.

    • Company A is granted $300K worth of coverage
    • Company A is granted a larger than requested amount
    • Company A is granted less than $300K
    • Company A is not granted any coverage due to significant risk


    If Company A is granted coverage, then your client is protected up to the limit of that coverage amount against Company A going bankrupt, or slow paying them.

    How does credit insurance help me to fund more deals?

    Once your client has secured a CoFace Credit Insurance policy they have turned their account receivables into secured assets. The CoFace policy they secured can have a loss payee assigned; the loss payee will receive any paid claims from bankruptcy and/or slow paying clients.

    It is this feature of the CoFace Credit Insurance policy that will allow you to lend more, as the receivables are now guaranteed to be paid which increases their value. As a lender you can also request to have your client name you as a loss payee on their CoFace policy as a requirement for funding. This allows you to be paid directly should their clients go bankrupt or slow pay.

    Example: Your client now has secured a $300K CoFace Credit Insurance policy on Company A; as a result, you are able to lend up to 90% of the value on Company A receivables, because they are secured from bankruptcy risk and slow payment, additionally your risk is lowered dramatically because you are named as a loss payee in the event a claim needs to be filed.

    Lenders always strive to meet their clients need while maintaining a balance between risk and reward. By requiring clients to obtain CoFace Credit Insurance you can lend more, lower risk, and have happy clients.

    For more information on CoFace Credit Insurance call James Graydon at 212-560-0434 to discuss how CoFace Credit Insurance can assist your clients. http://www.coface-usa.com/
    Last edited by CreditInsurance82; 04-09-2018 at 12:49 PM.

  2. #2
    Rated A2 by Moody's. What is the pricing range, as a percentage of the covered receivable?

  3. #3
    Quote Originally Posted by BB_Cooper View Post
    Rated A2 by Moody's. What is the pricing range, as a percentage of the covered receivable?
    Coface covers 90% of the invoiced price.

  4. #4
    Senior Member Reputation points: 216519
    Join Date
    Feb 2017
    Posts
    3,334

    So you work with factoring companies, I assume?

    You are on a board of mainly brokers, so is there some sort of referral fees you can offer us?

  5. #5
    Quote Originally Posted by abfunders View Post
    So you work with factoring companies, I assume?

    You are on a board of mainly brokers, so is there some sort of referral fees you can offer us?
    I responded to your post via pm.

  6. #6
    Karen37a
    Guest
    I will save my opinion being that I was with AIG ..American General and they offer the same products and were the dominating force worldwide and over steped and almost crashed the world.

    Your macro indicators are off and your company doesn't seem to be very bullish on the Usa and your company seems Anti Trump...maybe because your company is from France.

    "reduce the competitiveness of Us exports" pfft

    like that pepe le pew who tanked his stock ..sigh

  7. #7
    Senior Member Reputation points: 15507
    Join Date
    Dec 2016
    Location
    Brooklyn N.Y.
    Posts
    428

    Quote Originally Posted by CreditInsurance82 View Post
    So, what exactly is CoFace Credit Insurance?

    CoFace Credit Insurance is the insuring of a client’s account receivables from the risks of bankruptcy, slow pay, and credit risk. The insuring process is conducted by reviewing your client's top 15 customers. The review process focuses on consolidated financials, payment ratings, company age, location, line of business, court rulings, trade references, and industry trend behavior. All of these items factor into how much insurance coverage will be extend to a specific customer. Once that insurance coverage number is established your client will be protected from their customers going bankrupt, or slow paying them for the term of the policy, up to the limit of coverage approved.

    Example: Let's say your client does $300K worth of business to Company A and they request credit insurance to cover their outstanding receivables to Company A. CoFace Credit Insurance would underwrite Company A; depending on the outcome of underwriting; 1 of 4 scenarios occurs.

    • Company A is granted $300K worth of coverage
    • Company A is granted a larger than requested amount
    • Company A is granted less than $300K
    • Company A is not granted any coverage due to significant risk


    If Company A is granted coverage, then your client is protected up to the limit of that coverage amount against Company A going bankrupt, or slow paying them.

    How does credit insurance help me to fund more deals?

    Once your client has secured a CoFace Credit Insurance policy they have turned their account receivables into secured assets. The CoFace policy they secured can have a loss payee assigned; the loss payee will receive any paid claims from bankruptcy and/or slow paying clients.

    It is this feature of the CoFace Credit Insurance policy that will allow you to lend more, as the receivables are now guaranteed to be paid which increases their value. As a lender you can also request to have your client name you as a loss payee on their CoFace policy as a requirement for funding. This allows you to be paid directly should their clients go bankrupt or slow pay.

    Example: Your client now has secured a $300K CoFace Credit Insurance policy on Company A; as a result, you are able to lend up to 90% of the value on Company A receivables, because they are secured from bankruptcy risk and slow payment, additionally your risk is lowered dramatically because you are named as a loss payee in the event a claim needs to be filed.

    Lenders always strive to meet their clients need while maintaining a balance between risk and reward. By requiring clients to obtain CoFace Credit Insurance you can lend more, lower risk, and have happy clients.

    For more information on CoFace Credit Insurance call James Graydon at 212-560-0434 to discuss how CoFace Credit Insurance can assist your clients. http://www.coface-usa.com/
    Would you insure receivables purchased through an MCA contract?...
    High risk paper

  8. #8
    Karen37a
    Guest
    edit **

    Looking for the quick way out isn't always as simple as it seems

    Everyone do due diligence
    Last edited by Karen37a; 05-29-2018 at 10:01 AM.

  9. #9
    Senior Member Reputation points: 503040
    Join Date
    Oct 2016
    Posts
    4,319

    Quote Originally Posted by CreditInsurance82 View Post
    I responded to your post via pm.
    Why respond via PM? Feel like answering that publicly?

  10. #10
    Karen37a
    Guest
    "Frothy" Global Financial Market ...add frothy to industry jargon list ...check

    https://www.cnbc.com/2017/12/04/bis-...l-markets.html

    An improving global growth outlook and signals from both the Fed and ECB that they will look to adopt a cautious approach going forward was likely the explanation for stubbornly low yields, the BIS said, though it did also trigger a "deeper question."

    "Can a tightening be considered effective if financial conditions unambiguously ease? And, if the answer is 'no', what should central banks do?" Borio said.

    The BIS, known as the central bankers' bank, has 60 members and aims to help central banks pursue monetary and financial stability. It was one of the few organizations to warn investors about the unstable levels of bank lending on risky assets, such as U.S. subprime mortgages, that eventually led to the global financial crisis.

    The organization's chief economist at that time, William White – who has since become the Swiss-based chairman of the OECD's review committee – reportedly said last year that global debt levels had skyrocketed to unstable levels in response to low interest rates and the financial situation was now "worse than 2007."

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