CARDD Service for Credit and Commercial Debt Insurance

If you have an accounts receivable insurance policy, you can turn to the Claims Assistance and Recovery Center (CARDD), ensuring your collections and stable business relationships with suppliers.

Why insure a receivable? If you don’t collect the due invoice, you can’t be sure that the debtor will pay it, and you take on a major non-payment risk. However, if you have insured receivables, the Claims Assistance and Recovery Center guarantees the collection of invoices with a reasonable delay from debtors.

Insurance protects you against losses resulting from clients ceasing to pay your invoices, either due to bad faith, insolvency, or other external causes.

The CARDD team analyzes the risk level and offers you optimal insurance, ensuring you have a predictable cash flow.

What are the advantages of credit/debt insurance and why might debtors be unable to pay?

Running a business is difficult because it doesn’t always have a predictable cash flow. You need control and stability over the money coming in and going out of the company every month, otherwise, you risk ending up with just receivables and no liquidity, becoming part of the problem and not the solution to the receivables blockage. The company may become insolvent just like its imprudent or poorly managed partners.

A chronic situation within Romanian companies is the debt chain: debtors not paying their debts or delaying payments endanger the entire ecosystem of the honest company, and this can happen without warning and much sooner than you might think.

This is why CARDD offers you a proprietary credit/debt insurance service designed to provide the peace and security that any honest company greatly needs.

Don’t take the unnecessary risk of not collecting important debts

Not every receivable from your business partners needs to be insured. Regardless of how established your relationship with your commercial partner (service provider, supplier, distributor) is, we recommend insuring with CARDD primarily large receivables, over 5-10% of your turnover, depending on both your risk profile and that of the respective commercial partner – current or potential. In the case of large and very large companies, even receivables of 1-2% of turnover are often insured, and the procedure is even mandatory.

 

Cover a wide range of possible scenarios

There are several reasons why debtors might not pay their debts. The commercial debt insurance offered by CARDD protects you against the following main risks:

  • Debtors with bad faith intentionally do not pay to secure undue benefits.
  • Debtors, although acting in good faith, become insolvent.
  • Your debtors become insolvent.

The insurance offered by CARDD is not limited to these risks. Of course, each insurance policy is configured according to your particular situation, so you can benefit from the best costs in insuring all potential risks!

Transfer your liability to third parties interested in your receivables

In some cases, there are third parties directly interested in the realization of a company’s receivables. For example, in the case of a joint-stock company or a publicly listed company, investors are aware of the major transactions concluded by the company and have every interest in these transactions being conducted properly, thus protecting their profits. Another example is real estate developers who also have investors for their projects. These interested third parties, in the event of an inability to realize the receivable, will turn against you, and you will be liable with your company’s assets.

To prevent such dispossession, we recommend using the debt insurance service offered by CARDD to gain the peace and security you need to focus on your work.

Predictable Cash Flow

By insuring your company’s receivables, you can avoid the worry of a lack of funds for investments or payments, and you will be able to develop predictably according to your plans and the positive expectations of your business partners. Let us take on the non-payment risk, and thus, buy the peace and security for your managerial efforts.

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