ACREDIA Veto – in case the tide turns.

Preferential payment insurance covers you against preferential payment claims. But what does that mean exactly?

Imagine that you’ve fulfilled an order and been paid. Years later your customer goes insolvent, an insolvency administrator declares the payments void and requires you to repay the money you received years ago, with interest. That could be disastrous for many companies. As an ACREDIA customer, you don’t need to have sleepless nights. ACREDIA Veto preferential payment insurance covers your receivables retroactively!

Preferential payment insurance – cover that pays off.

Payments received can be declared void if the insolvency administrator maintains that …

• you benefited from the payment at the expense of other creditors.
• you were aware of or should have been aware of the insolvency of your customer at the time of the payment.
• the contract concluded with you was disadvantageous to other creditors.

Is your answer “yes” to any of the following questions?

• Instead of paying, has your customer ever assigned a receivable to you or given you a cheque that your customer itself received from one of its customers?
• Have you threatened your customer with legal enforcement or an insolvency petition and did your customer then pay you to avoid such measures?
• Has your customer made a payment after a cheque already bounced or a direct debit was returned?
• Has your customer made nothing but losses in the months preceding the insolvency? If so, the insolvency administrator can argue that it could have been prevented if you had stopped supplying to the customer. 

If so, you’re at risk of preferential payment claims.

Preferential payment claims typically concern the last months before the start of insolvency proceedings. In extreme cases, payments from the previous ten years can even be voided retroactively.

Contact

ACREDIA Versicherung AG