In order to support companies in obtaining, implementing and protecting public and private contracts from default, the National Insurance and Reinsurance Company (SONAR) has designed a new product for it called “Credit Guarantee Insurance”. A product that aims to enable subscribers to transact with peace of mind. An innovative solution, this show was formally presented on Thursday 9 June 2022 to the men and women of the media during a press lunch.
Helping companies deal with the bankruptcy of clients and meet the needs related to market security, and the financial security required by certain sectors of the activity, these are the main concerns of the economic players for whom SONAR wants to provide a solution. By securing a credit guarantee. With this product, Sonar offers its customers collateral and credit insurance.
The purpose of credit insurance is to insure the insured against the risk of default by his principal due to bankruptcy. For example, it allows a supplier to have more confidence because in the event of a default, credit insurance will compensate for the customer’s bankruptcy. As for escrow insurance, it allows companies to protect in relation to the obligations undertaken.
- Thomas Zongo, CEO of Sonar
In this specific case, SONAR undertakes in case of difficulty for the company, to pay the beneficiary the amount of the deposit indicated in the contract. This allows financial institutions and banks to place greater trust in companies to implement contracts. In addition, Sonar offers six types of coverage. We have bid bond, performance bond, advance payment refund bond, withholding assignment bond, financial bond as well as supplier credit guarantee.
According to the general manager of the insurance company, Thomas Zongo, credit guarantee insurance facilitates the acquisition and execution of contracts and contributes to the financial security of companies. Many companies do not have sufficient assets or equity that can be used as collateral or security. With this product, the insurance company replaces the contractor to provide the guarantee and reassure the contracting authority that the company submitting bids in the market has financial guarantees to be able to implement the contract without problems,” he explains.
- Emmanuel Yoda Actor The Godfather
Therefore credit security insurance has many advantages, including facilitating access to new markets and contracts by insuring clients and business partners; Enhance the company’s credibility in contract performance. Improving cash flow plus access to affordable financing. It is possible to subscribe to this insurance offer, for 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.
This new service provided by SONAR was launched under the auspices of Isaka Kargogo, Director General of the Chamber of Commerce and Industry of Burkina Faso. He, 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 the natural and legal persons applying for public and private contracts and those who require financial security, to contact SONAR to discover and use the credit guarantee insurance you offer.
Armel Ouedraogo / Yamyogo