For a young company, one of the first major turning points is to properly manage the moment when you decide to export yourself abroad! New market, new customers, longer distances and therefore higher risks that must be managed, in particular via credit insurance. So, how to go about it, what is it for?
Regardless of the company, the product offered or the service provided, almost all companies are involved at one time or another in exporting. When you are in full growth, the turnover is good and everything seems to be working, you can very quickly want to try the experience of exporting and set out to conquer a new market to become an international company!
Obviously, this is not a decision to be taken lightly: you have to take the time to do real market research, find the best place to set up shop, successfully adapt your product or offer, but also set up the means to export and, above all, to protect themselves, in particular via insurance such as credit insurance which protects companies that export.
When the distances increase, the language barrier can set in and the hazards become more and more numerous, your company runs more and more risks and must know how to protect itself from the various incidents that can happen during a order as well as unpleasant surprises. This is how credit insurance can provide you with appropriate protection when you want to export and gain market share!
Let’s take the following example: a company has just started exporting and successfully negotiates its first major contract. Everything is going well so far and the goods are shipped. But, following an unforeseen event, the customer finds himself in default of payment. Except that in addition, to carry out this first order you needed additional funds that you now have to repay and you are stuck between a payment that does not come and a credit to be repaid.
It is in this type of circumstance that credit insurance can protect you and guarantee your interests. Abroad, it is impossible for you to accurately predict all the evolutions of the economic or political contexts, it is therefore recommended to take out insurance. Indeed, by taking into account the local conjecture, a local insurance protects you from the impact of unpaid bills. But you also benefit from an expertise on the financial situation of your customers carried out by experts of the local market.
And if you are unable to obtain recovery of your unpaid bills, your credit insurance guarantees you compensation for the loss incurred, enough to sustain your business and protect you from the risk of unpaid bills. This is one of the necessary conditions for a good export start!
The question is to protect yourself from unpaid bills, which are a significant risk that can have serious consequences on your business and threaten its sustainability. In addition to having had to put you in difficulty to ensure the delivery of the order, you find yourself with a planned inflow of money that is delayed or even aborted and yet you have to respond to your creditors.
The management of unpaid bills is a sine qua non of export success and it is better for this to be able to have recourse to credit insurance in order to protect your company from the risks linked to the political or economic conditions of foreign countries, especially in the current context.