Credit Insurance

Chapter 1

Introduction

Companies use credit insurance as one of the personal securities and frequently used high-quality means of protection against payment risks, that is, the possibility that the buyer (debtor) will not make payment for goods and services in full and in a timely fashion. These risks are economic phenomena of nonnegligible proportions thus influencing the business success. Effective protection against the debtors’ insolvency and default risks is one of the key factors for success in business operations.

The principal motive of companies is to make profit. The latter in general depends on the revenues and expenses resulting from the business operations. However, sound business decisions must give consideration to other factors ...