Anyone who sells internationally is familiar with this problem: The primary insurer considers a key customer too risky—or will only provide coverage for a reduced amount. This is exactly where Credendo’s layer solution comes in: targeted supplemental coverage that allows companies to tap into sales potential in challenging markets without uncontrollably increasing their default risk.

What is Credendo’s layer solution?

Credendo’s “Layer” solution is a policy-based supplemental capacity that supplements existing trade credit insurance. The core concept:

  • More coverage per customer: The primary insurer approves only a limited credit limit—the layer policy increases the insured amount for that specific debtor.
  • Coverage Even in Case of Rejection: If a customer is not covered at all by the primary insurer, the layer solution can provide coverage starting from the first euro (“ground-up”).
  • Case-by-case assessment: Each debtor is assessed individually—a tailored approach rather than a one-size-fits-all solution.

In this way, the layered solution addresses the most common weakness of traditional credit insurance programs: gaps in coverage for individual, strategically important customers—particularly in markets with limited insurance capacity.

Here’s how the layered approach works in practice

Credendo’s “Layer” solution—Trade Credit Insurance—is designed as a flexible supplemental policy that steps in exactly where the standard program falls short. A typical application looks like this:

  1. Analysis: In collaboration with the insurer, we identify which debtors have a coverage gap—for example, because the primary insurer has capped the credit limit or declined the customer.
  2. Case-by-case coverage: Credendo assesses each specific debtor individually and provides coverage beyond that assessment—either as an additional layer on top of the existing limit or as complete ground-up coverage.
  3. Quickly Capitalizing on Market Opportunities: Because the assessment is tailored to each customer, the additional coverage can be provided even on short notice—for example, when a country’s economic situation improves and new business opportunities arise.

This becomes particularly valuable in highly dynamic markets: Those who can deliver while others are still waiting for insurance coverage secure market share before the competition can react. Added to this is the insurer’s market expertise: the insurer’s risk assessment and the company’s own credit management complement each other rather than contradicting one another. When both sides deem a customer insurable, sales opportunities can be capitalized on without any friction.

Layer Solution vs. Top-Up Solution: The Difference

Credendo offers two different ways to increase credit insurance capacity—which are easily confused:

Layer Solution (Trade Credit Insurance) Top-up Solution (Guarantees & Specialty Risks)
Approach Selective, customized, on a case-by-case basis Automatic, formula-based
When? For specific customers who require additional credit—even in cases where the primary insurer has completely denied the request On existing credit limits approved by the primary insurer
Scope Customized for each customer Can double approved limits—and even exceed them with “Top-up Prime”
Termination Agreement on a case-by-case basis Automatic coverage; cannot be terminated by Credendo
Administration Case-by-Case Review Minimal – seamless integration into the existing program, no renegotiation with the primary insurer

 

In practice, top-up and layer solutions can complement each other. When combined, they bridge capacity gaps and create a more comprehensive risk mitigation framework—a model that has already been successfully implemented.

Who is a layered solution suitable for?

The layered solution is particularly beneficial for exporters and international retailers when:

  1. Credit limits are tight—the primary insurer approves less coverage than the customer’s purchase volume.
  2. Customers may be completely rejected—for example, in frontier markets with limited insurance capacity.
  3. Growth markets with high risks are to be tapped (Latin America, Africa, parts of Asia).
  4. Rising commodity and energy prices are driving up input and selling prices—and, as a result, the risk of bad debt.
  5. There is a concentration of risk among a small number of major customers (distributors, importers, key accounts).

Conclusion:

Please feel free to contact us so that together we can turn your sales opportunities into reality, even in challenging markets.