Q&A

UnderstandingAccounts ReceivableInsurance

THE CREDIT BUSINESS EXPERTS

In addition to accounts receivable insurance,

Coface provides solutions for every aspect of

managing credit risk at home or abroad, including:

• Accounts receivable management and commercial debt collections

• Business information and credit opinions

• Receivables financing and factoring

• Marketing information for finding new suppliers and customers

n business, extending credit

to customers is a fact of life.

So is the risk that goes with it.

Accounts receivable insurance

removes much of this risk.

I

Your t rade r i sks , under control .

Accounts Rece ivable Protect ion

US

COFACE NORTH AMERICA INSURANCE COMPANY

Windsor Corporate Park50 Millstone Road

Building 100 - Suite 360East Windsor, NJ 08520

Tel: 1-877-6-COFACE (1-877-626-3223)Fax: 1-609-490-1581

e-mail: cofaceusa@coface.comweb site: www.coface-usa.com

This brochure is for illustrative purposes only and is neither an offer nor a contract.It is intended to provide a general overview of the policy described. Only the policy can provide the actual terms, coverages, amounts, conditions and exclusions.Coface North America Insurance Company coverage not available in all states.

WHAT IS ACCOUNTS RECEIVABLE INSURANCE?

It’s a policy that ensures your company will be paid for

merchandise or services delivered to your customer. Eachpolicy is subject to the terms and conditions of your coverageand covers the unpaid credit balance from sales made to your customers. It is also known as credit insurance.

WHAT DOES OUR CREDIT INSURANCE COVER?

A Coface policy insures your accounts receivable fromcustomers located in Canada and the United States, aswell as throughout the world. Each policy is structuredindividually. This way your policy covers only what yourcompany needs. While most companies choose to cover

all of their accounts, you may exclude some accounts if you wish.

HOW DOES IT WORK?

Each policy is tailored to the individual needs of thebusiness, so coverage details will vary. In general, acompany covers all or a majority of its business, and may choose to cover export, domestic or both types of

accounts. Policyholders are eligible to file a claim when

a customer is insolvent or unable to pay the outstandingbalance owed. Since Coface North America is part of the global Coface group, we are able to cover sales ofsubsidiaries or sister companies in other countries, as well as provide local features such as risk monitoring

and collection services.

All policyholders receive access to Cofanet, our onlinepolicy management tool. With Cofanet, policyholders can search Coface’s database of over 50 million companiesworldwide to request, change or cancel coverage with ease.

Insuring your accounts receivable ensures your business will be around tomorrow.

All buyer details are conveniently stored in Cofanet andmay be exported for use in the policyholder’s internalmanagement systems.

WHAT ARE THE OTHER BENEFITS?

Since we provide a comprehensive credit managementservice, you have access to a number of additional benefits. These include:

Credit Information – To help ensure that you are selling to creditworthy customers, we track over 50 millioncompanies around the world. This extensive scope ofinformation gives you access to the detailed knowledge youneed when deciding to extend credit and determining theterms of the credit. If we decide to deny coverage for one

of your accounts, we will tell you why.

Past Due Collection Services – Coface Collections NorthAmerica, Inc., can help you control past due accounts with proven services tailored to your needs. We can

professionally handle accounts nationwide and because of the Coface group’s global presence, we are the U.S.leader in international accounts receivable management

and debt collection.

WHAT IF I OPERATE ABROAD?

Credit insurance can cover your export and your domesticsales. In addition, if your company has operations in more

than one country, our Globalliance program permits us to issue policies locally to your foreign operation through

the Coface international network. Globalliance policieshave standard wording and are adapted to local laws. They can be serviced centrally or with local underwritingand collections, depending on your company’s needs.

MY CREDIT LOSSES HAVE ALWAYS BEEN VERYSMALL.WHY DO I NEED CREDIT INSURANCE?

A severe credit loss shrinks much needed working capitaland erodes profits. Even a small loss means you will bespending part of the year working just to recover the loss.

WHAT ARE SOME OTHER ADVANTAGES?

By insuring your accounts receivable, you free yourself to expand into new and unfamiliar markets much morecomfortably. Your policy may also allow you to generatemore sales by extending a larger line of credit than you might normally offer. And a portfolio of accountsreceivable that is insured may assist you in obtaininglarger loans or better terms from your financialinstitution. If you are selling abroad, credit insuranceallows you to avoid the hassle of getting letters of credit.

WHO IS COFACE?

Coface is a global provider of credit information,management and protection services. Currently, Cofaceserves over 100,000 customers throughout the U.S. and the world. We have a direct presence in 60 countries and,through our partners, we can provide services in over 90countries. Coface S.A., has received excellent ratings from

Moody’s, Standard & Poor’s and Fitch Ratings, giving youadditional assurance of our strength and integrity.

For more information on our services, or to find out

how we can help your business, please feel free to contactus by phone, fax or e-mail. Or, visit us on the Web atwww.coface-usa.com.