Seguro de Crédito
At GRUPO PACC, we provide companies with a specialized Credit Insurance Division designed to serve as a strategic partner—guiding and advising you in all matters related to commercial risk management.
What is the Credit Insurance?
Credit insurance is a type of insurance intended to guarantee the collection, by a natural or legal person, of receivables owed to them in the event of non-payment due to the insolvency or prolonged default of their debtors.
How Does Credit Insurance Work?
The insurer operates as an outsourced risk management department. It analyzes, evaluates, and classifies each of your customers and determines the maximum credit limit it is willing to assume in case of insolvency or extended non-payment.
These assessments provide valuable insight into the risk profile of both existing and prospective clients.
Key Guarantees & Coverage Phases
Credit insurance operates across four clearly defined phases:
PREVENTION
With credit insurance, companies have the best and most up-to-date information about their clients, regardless of their target market. Your company “incorporates” a risk department that analyses and assesses the past, present and future payment behaviour of your buyers, in any country where you wish to market your products and/or services.
RECOVERY
When, despite such prevention, a default cannot be avoided, insurers undertake debt recovery actions, both nationally and internationally. Claims are pursued amicably, through legal proceedings or insolvency proceedings. All this without your company having to devote effort or resources.
COMPENSATION
If a default could not be foreseen and subsequent recovery actions have been unsuccessful, through credit insurance the insurer guarantees and indemnifies the sales made, always within the framework of the policy and up to the limits previously authorised by the insurer.
FINANCING
Credit insurance is a powerful financial tool, as it allows us to finance our working capital without the financial institution having to assume any risk.
Main Types of Credit Insurance
- Traditional Credit Insurance
- Excess / Second-Layer Credit Insurance
- Portfolio Coverage for a Group of Clients
- Single Risk: wrongful bond execution; supplier credit (export contract non-payment or unjustified termination); documentary credit confirmation; political risk (expropriation, confiscation, nationalization, lack of transparency, etc.)
- Single Buyer coverage
- Excess of Loss coverage
Additional Services Offered by GRUPO PACC’s Credit Division:
- Domestic and international debt collection
- Foreign exchange insurance
- Factoring
- Commercial credit reports
Main services provided by the Credit Division to its clients:
- Analysis of the client’s needs.
- Analysis of the insurance market based on the client’s needs: study of the characteristics of the sector and the client, in order to determine the most appropriate Insurer and conditions in each case.
- Audit and review of contracted policies: we supervise both the specific conditions and the issued endorsements.
- Operational analysis of order intake, as well as the client’s invoicing and delivery process: in order to reduce potential risks arising from unclear traceability throughout the sales process that could lead to the exclusion of claims.
Surety insurance
What is Surety Insurance?
Surety insurance is a guarantee intended to ensure the fulfilment of an obligation by the client towards a third party. To this end, the insurer undertakes to indemnify the beneficiary (insured party) for the losses suffered if the policyholder fails to comply with the legal or contractual obligations undertaken with them.
Both the guarantee of a surety insurance policy and that of a bank guarantee are governed by Royal Legislative Decree 2/2000 of 16 June, approving the consolidated text of Law 13/1995 of 18 May, on Public Administration Contracts.
When is Surety Insurance needed?
Surety insurance is necessary for companies that work with the Public Administration.
Companies that contract with Public Administrations or participate in Public Tenders must, in accordance with the Public Administration Contracts Law, provide a series of guarantees or bonds in order to ensure compliance with the obligations undertaken with the administration. These guarantees may include, for example, advance payment guarantees, bid bonds or performance bonds.
Types of Surety Insurance
- Surety Insurance for Stockpiling/Advance payment of materials
- Surety Insurance for Customs and Imports
- Surety Insurance for Securing advance payments
- Surety Insurance for Real Estate Agents
- Surety Insurance for Travel Agencies
- Surety Insurance for Tax deferrals
- Surety Insurance for Transport Concessions
- Surety Insurance for Public Concessions
- Surety Insurance for Tenders (provisional and final)
- Surety Insurance for Security Companies
- Surety Insurance for Renewable Energy
- Surety Insurance for Grid Connection Bonds
- Surety Insurance for Guarantees for insurance brokers
- Surety Insurance for Private contractual guarantees
- Surety Insurance for International Guarantees
- Surety Insurance for Judicial Guarantees
- Surety Insurance for Guarantees for Temporary Employment Agencies (ETT)
- Surety Insurance for Excise Duties (alcohol and hydrocarbons)
- Surety Insurance for Gaming
- Surety Insurance for Electricity producers and suppliers
- Surety Insurance for Enforcement orders
- Surety Insurance for Environmental restoration
- Surety Insurance for Subsidies
Advantages of Surety Insurance
- Does not impact bank risk reporting (CIRBE)
- Increases borrowing capacity
- Lower costs (no opening or cancellation fees)
- Competitive rates
- Typically more cost-effective than bank guarantees
- Fast issuance of individual guarantees
- Does not immobilize financial resources that can be used for other business needs
