In order to support companies in obtaining and carrying out public and private contracts and to protect them against payment defaults, the National Insurance and Reinsurance Company (SONAR) has designed a new product for them called “Credit-guarantee insurance”. A product whose objective is to enable subscribers to undertake transactions with peace of mind. Considered an innovative solution, this offer was officially presented this Thursday, June 9, 2022 to men and women of the media during a press lunch.
Helping companies deal with customer insolvency and meeting the needs related to the market guarantee, the financial guarantee required by certain sectors of activity, these are major concerns of economic players to which SONAR wants to provide a solution. by means of credit-guarantee insurance. With this product, SONAR offers surety insurance and credit insurance to its customers.
The purpose of credit insurance is to guarantee the insured against the risk of default by his client due to insolvency. For example, it allows the supplier to have more confidence because in the event of default, credit insurance will compensate for the customer’s insolvency. As for surety insurance, it allows companies to be protected in relation to the commitments made.
- Thomas Zongo, CEO of SONAR
In this specific case, SONAR undertakes, in the event of difficulty for the company, to pay the beneficiary the amount of the deposit indicated on the contract. This allows financial institutions and banks to place greater trust in companies for contract execution. In addition, six types of coverage are offered by SONAR. We have the bid bond, the performance bond, the down payment refund bond, the withholding waiver bond, financial bond as well as the supplier credit guarantee.
According to the general manager of the insurance company, Thomas Zongo, the credit-surety insurance facilitates the obtaining and execution of contracts and contributes to the financial security of companies. “Many companies do not have enough assets or equity that can be used as collateral or surety. And with this product, the insurer takes the place of the contractor to offer the guarantee and reassure the contracting authority that the company which is bidding on the market has financial guarantees to be able to carry out the contract without problem ” , he explains.
- Emmanuel Yoda, representative of the godfather
Credit-surety insurance therefore has several advantages, including the facilitation of obtaining new markets and contracts by securing customers and business partners; strengthening the credibility of the company in the performance of contracts; cash flow optimization as well as access to affordable financing. Can subscribe to this insurance offer, all natural and legal persons who work in the field of public and private markets, as well as those who carry out activities subject to financial guarantees.
The launch of this new service offered by SONAR was placed under the patronage of Issaka Kargougou, Director General of the Chamber of Commerce and Industry of Burkina. He has, through the voice of his representative, Emmanuel Yoda, welcomed this new solution which, in his opinion, will bring relief to entrepreneurs. He did not fail to invite natural and legal persons who apply for public and private contracts and those who need a financial guarantee, to get in touch with SONAR to discover and use the credit-guarantee insurance that it offers.