Partner for BiH
Trade Credit & Financial Risk Insurance
Trade credit insurance protects your business against losses arising when a customer fails to pay an invoice through inability or unwillingness to meet its obligations.
As an intermediary, VIPOX finds you a solution against the risk of non-payment that at the same time improves access to trade finance and supports business growth. Trade receivables can account for as much as 40% of the assets on the balance sheet, so protecting them is a strategic decision that safeguards a key company asset.
With your receivables insured, you can extend trade credit more confidently, expand into new markets and use the policy as collateral for more favourable financing. VIPOX finds the optimal solution by combining maximum cover with the lowest cost, alongside continuous market monitoring and analysis of your customers' risk.
Who it is for
The service is intended for trading companies, financial institutions and any firm that provides services or supplies goods on deferred payment terms (on invoice) — in both domestic business and exports. Two main groups of risk are covered. Commercial risk comprises a customer's bankruptcy or insolvency and protracted default, where the customer fails to pay even after the agreed due date. Political risk, which is particularly significant in exports, comprises war, revolution, expropriation and the inability to transfer currency, as well as catastrophes (earthquake, hurricane) and economic disruption in the customer's country.
Key benefits
Balance-sheet protection — receivables are often the largest uninsured asset (up to around 40% of the balance sheet), and the policy safeguards that asset and enables profitable growth. Safer sales expansion — you can extend more trade credit and enter new sectors and countries with less risk, reducing reliance on letters of credit. Better financing — banks accept insured receivables as collateral, enabling greater and cheaper access to working capital and supporting factoring and securitisation. Better credit-risk management — through the credit information, monitoring and collection services offered by insurers. VIPOX analyses your customers' creditworthiness, sets credit limits, negotiates with insurers and manages your trade credit insurance programme, with up-to-date information and continuous market monitoring. As AON's partner for BiH, VIPOX also provides you, through that partnership, with access to the international trade credit insurance market. Our aim is long-term client partnerships supported by a highly professional day-to-day service.
Key note
The English name of the service is "Trade Credit Insurance / Insurance of receivables". Cover comprises insolvency, protracted default and political risk. "Top-up" cover resolves situations in which the primary insurer grants too low a limit for a key customer. VIPOX tailors the entire service — analysis of customer risk, setting of limits, top-up, bonds and factoring — to domestic exporters and trading companies.