Compagnie Française d'Assurance pour le Commerce Extérieur
|Traded as||Euronext : COFA|
|Headquarters||Bois-Colombes , France|
|Products||credit insurance, factoring, debt collection, business information, bonding|
|Owner||Arch Capital Group , floating|
- 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.
- 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.
- 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.
- 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.
- 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 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.
- 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.
- 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