A matter of definition
The term credit insurance is a particular one. Indeed, it can refer to two different products. The first product is related to personal loans, as the second one is a specific service included in factoring solutions for SME.
Personal loan
When talking about a private credit, namely a loan granted by a bank or financial institution to a private person, a credit insurance is an protection that covers the monthly repayment of the loan in case of death, illness, unemployment, … There are two types of coverage:
- Mandatory credit insurance: this is a coverage in case of death. It is included in every contrat, and its cost is included in the interest.
- Non-mandatory credit insurance: this coverage protects in case of illness, disability, or unemployment. It leads to an extra cost for the customer.
For more information about this type of product, Creditloan offers a full guide for credit insurances.
Factoring
Factoring is a solution for small and medium businesses. Its purpose is to offer a protection against non-payment risks. This product is generally divided into 3 services:
- The factoring solution itself
- Assignment
- Credit insurance
In that case, a credit insurance represents a range of services destined to externalize a certain number of credit management issues. It includes risk analysis and monitoring, and offers indemnification in case a claim occurs.
MultiCredit supports its clients in their daily lives
When you call on MultiCredit, you are putting your trust in a specialist who has been operating in Switzerland since 1999. Our experts have extensive experience in financing.
More than 90’000 clients have placed their trust in us over the course of our 23-year history. We take care of your request free of charge and with speed between 24 and 48 hours. We always put people first, on all projects and with tailor-made solutions.
