Solution: Whole Turnover (WTO)
A comprehensive insurance program that covers company's entire debtor portfolio, insuring all credit sales up to agreed limits. This provides broad protection against non-payment risks such as insolvency, protracted default, and other credit-related events. Insurers continuously monitor the financial health and payment behavior of your customers, ensuring coverage reflects real-time creditworthiness. Ideal for companies seeking to transfer their full credit risk exposure to a selected insurer and implement an effective tool of credit risk transfer into their credit risk management procedure.
Main Characteristics:
Subject of Coverage: Receivables from all of your customers are insured under a single policy.
Losses Covered: Insolvency, protracted payment after a pre-agreed waiting period, and other credit-related events.
Risk Management: Insurer continuously monitors the financial health and payment behavior of your customers, giving you real-time insights and proactive risk alerts.
Additional Coverage: Collection costs, consignment stock, production risk, and more.
Self-Retention: Typically between 5% and 10%.
Why Choose Whole Turnover Coverage?
Comperhensive Risk Transfer: Transfer your entire credit risk exposure to a selected insurer.
Cash Flow Stability: Predictable cash flows due to insurer reimbursement of loss for bad debt losses.
Growth Enablement: Expand fast and confidently into new markets and land new customers without fear of non-payment.
Financing Advantage: Secure your receivables and improve access to bank financing.
Process Improvement: Following the insurer’s credit risk management standards helps you standardise and enhance your internal procedures.