Credit Insurance: Financial Instrument for the Development of Small and Medium Enterprises

Abstract

The credit insurance contract directly protects the assets of the insured against the risk of credit default due to various factors. In this sense, it plays a transcendental role for the financial safeguard of the business sector, particularly of small and medium-sized companies. Precisely the following paper has as its fundamental objective to analyze the usefulness that the credit insurance contract represents from the perspective of the insured companies, with special emphasis on those of a smaller scale. For this, it begins through a historical-logical examination, pointing out the essential aspects of its historical evolution up to the present. Secondly, this insurance modality is analyzed from a theoretical-legal approach, covering its definition, principles, distinctive features as a modality of the patrimonial branch, its differences with surety insurance, some of the different types of existing credit insurance, personal, real and formal elements and its obligatory content. On the other hand, in relation to small and medium-sized companies, we reflect on the fundamental obstacles they face in the development of their corporate purpose, in search of those spaces where credit insurance can display its greatest benefits. Finally, it concludes by arguing how credit insurance is a very important tool for growth and financial protection for smaller-scale companies based on the advantages it represents.