la coface

Understanding Coface credit insurance

Coface, under this acronym which undoubtedly seems familiar to you, hides the acronym of the Compagnie Française d’Assurance pour le Commerce Extérieur. This insurance company, which was founded in 1946, aims to facilitate commercial exchanges between French companies and those of foreign nationality. Among the services that COFACE offers, we find, among other things, credit insurance directly linked to the field of export, trade and the financing of developing companies.

What are the different missions of COFACE?

The main mission of the French Foreign Trade Insurance Company is to offer companies, regardless of their size (SME, small business or multinational), credit insurance against unpaid debts. As such, it takes care of risk management directly linked to exports for the French State because these are not required to be handled in the private sector.

There Coface offers companies the opportunity to take out insurance on French territory but also abroad by offering them access to numerous services including:

  • Insurance regarding the sale of goods and their payment.
  • Provide access to tools to analyze the risk factor in many markets.
  • Offer coverage of financial needs linked to the development of the business.
  • To make factoring more accessible by facilitating the management and payment of receivables to an external company.

Optimize your cash flow by controlling the risks linked to your customers

Optimizing your cash flow requires complete control of customer account management. To be able to ensure the success of this project, the writing, sending and monitoring of quotes must be tailor-made according to your needs and the internal organization of your company. Taking advantage of expertise in this area, Coface offers its clients support and help them optimize customer workstation performance as best as possible.

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To summarize, it is a question of deploying various levers and methods intended to limit the risk of non-payments. On this point, preventive action will have a favorable impact towards the sustainable growth of your business in the long term.

How does credit insurance work?

Credit insurance is the service that has given Coface its reputation and popularity since its creation.

In terms of figures, the French Insurance Company currently covers no less than 450 billion euros in debts. It also gives suppliers who have taken out life insurance the possibility of receiving their full payment in the event that the buyer fails.

Coface also takes care of on behalf of the State major contracts by providing all the guarantees necessary for compensation for sums exceeding several million euros.

A unique rating system to assess and limit the risk factor for your exports and investments.

In order to make foreign transactions even more secure, Coface has created a unique rating system, quantifying the results of companies. This rating system is applied to a rich and varied database, covering a wide range of companies based in different countries and thus making it possible to accurately assess the risk factor linked to transactions as well as exports.

The risk factor itself is evaluated through the analysis of different markers. The analysis of the macro-economy, the risks linked to banking and financial policies as well as the detailed analysis of the slightest unpaid debt, ensure an effective audit of each company and its unique risk factor.

In terms of figures, this rating system set up by Coface evaluates no less than 50 million companies across the four corners of the globe. Enough to gain confidence during your export transactions and thus ensure the financial plan of your projects.