Coface

Compagnie Française d'Assurance pour le Commerce Extérieur

TypeSociété anonyme
Traded asEuronext : COFA
IndustryCredit Insurance
Founded1946
HeadquartersBois-Colombes , France
Area servedWorldwide
Productscredit insurance, factoring, debt collection, business information, bonding
OwnerArch Capital Group , floating
Websitewww.coface.com
  • Compagnie Française d'Assurance pour le Commerce Extérieur ( Coface) is a credit insurer operating globally, offering companies solutions to protect them against the risk of financial default of their clients, both in their domestic and export market.
  • In complement to credit insurance, Coface also offers debt collection services, factoring and business information, and bonds.
  • Created in 1946, Coface was listed on the Euronext Paris Stock Exchange in 2014.
  • Each quarter, Coface publishes its assessments of country risk for 160 countries, based on its knowledge of companies' payment behaviour and on the expertise of its underwriters.

Activities

  • Coface is a credit insurer operating globally, offering companies solutions to protect them against the risk of financial default of their clients, both in their domestic and export market.
  • In complement to credit insurance, Coface also offers debt collection services, factoring, business information, and bonding.

Credit insurance

  • A company dispatches a major order to a new client in a developing market.
  • If the client fails to pay within the agreed timeframe, the company risks insolvency or even bankruptcy.
  • Credit insurance helps companies avoid that risk.
  • The credit insurer assesses the financial health of companies' clients, based on a real-time analysis of country, sector and credit risks, and provides information that enables transactions to be carried out more securely.
  • The credit insurer alerts companies of any changes in the financial situation of their clients.
  • If a risk is established, the credit insurer collects debts in their name and guarantees the payment of trade receivables.
  • In providing that guarantee, credit insurance also enables improved credit and loan conditions from banks.

Debt collection

  • The collection of trade receivables is key to the sound management of business risk.
  • This service, offered by Coface in some countries, can help maintain the relationship between the debtor and the creditor, leaving the door open for resuming business in the future.

Business information

  • To prevent the risk of non-payment, it is important to collect relevant information on buyers and their environment.
  • An analysis of this information serves as a basis for decision-making.
  • Coface offers various information services, ranging from the provision of raw data to a risk-taking recommendation on any company in the world.
  • Multiple levels of information are collected and analyzed: information reports, synthetic indicators of single and global risk, and various risk-taking recommendation tools.
  • Companies can also take direct marketing in interesting directions with a credit risk assessment.

Factoring

  • Factoring allows companies to grant extended payment deadlines to their clients.
  • The company issues its invoice as usual.
  • Coface then provides it with virtually the entire amount of the invoice until the client's payment is received.

Bonding

  • When submitting a bid for an RFP, importing/exporting, or conducting certain types of transactions, companies sometimes need guarantees.
  • Coface offers four types of bonds: market guarantees, regulated profession guarantees, environmental guarantees, and customs/excise duty guarantees.

Economic research

  • Coface's Economic Research department analyzes country and sector risks and corporate insolvencies worldwide.
  • Their studies are published on the Coface websites, with their forecasts on international or business risks.
  • Each year, Coface published its Country & Sector Risk Handbook, providing an economic outlook for 162 countries and 13 global sectors.

Country Risk Assessments

  • Coface's country risk analysis enables companies to assess the risk of a business defaulting in a given country, and to evaluate the overall quality of the business environment in the country to which it wishes to export goods or services.
  • Coface assigns a rating to each of the 162 countries it monitors. This rating reflects the average risk of short-term non-payment for companies in this country. Eight ranks are used: A1: very low risk A2: low risk A3: quite acceptable risk A4: acceptable risk B: significant risk C: high risk D: very high risk E: extreme risk

Coface publishes its country risks assessments on a quarterly basis.

Equivalent in the world

  • Germany: Euler Hermes
  • Netherlands: Atradius
  • United States: Export-Import Bank of the United States
  • United Kingdom: UK Export Finance
  • Italy: Servizi Assicurativi del Commercio Estero

Leave a Reply

Your email address will not be published.