An agreement was signed in April 2016 between Coface and BPI France that makes official the transfer of the Coface Credit Insurance activity, among others, to BPI France. A dedicated branch, named BPIFrance Assurance Export, should be created before the end of the year 2016. This decision from the French government is in line with what was started around two years ago when UBIFrance and the Agence française pour les investissements internationaux (French Agency for International investments) were merged to become BUSINESS FRANCE. The goal is to increase the readability of public insurance scheme for companies (mainly SMEs) willing to export. This is an attempt to reduce the French trade deficit: in the first half of 2016, exports fell by 2.4% in value (-0.1% in volume).
The Coface Credit Insurance services protect companies against potential non-payment by their customers, with cover provided in approximately 200 countries, hence reducing exposure to exchange-rate risk and country risk.
In the case of an Indian company looking for opportunities abroad, we suggest two insurance services particularly valuable:
– Tradeliner: It is a comprehensive and tailor-made offer to prevent of and cover against the risk of unpaid invoice. It safe-guards cash-flow and profit margin and is an effective tool to enhance credit management, bringing financial stability and facilitating the healthy growth of your business.
– Topliner: It is designed for situations where, for a given buyer, the insured company has received a guarantee with an amount which is less than that requested (or no guarantee at all). The price depends on the risk assessment, the guaranteed amount and duration of the requested cover. This contract is particularly sought-after by companies looking to cover a high-priority or highly profitable development project.[i]
Richelieu Advisors provide support to Indian companies willing to develop their activity in the European market. Our range of services extends from opportunity studies to local operational support including application for financial support from Coface and BPI France.
Date : 17/11/2016