According to Jose Schachner, chairman of Chile's factoring association, non-bank factoring companies in Chile are betting on credit insurance to increase their prestige and boost sales.
Credit insurers have traditionally been wary of factoring companies because they produced a high level of claims, while factoring companies tended to view credit insurance as an unnecessary cost, according to Rodrigo Ferrando, financial insurance division manager at local insurance brokerage Cono Sur. But today the non-bank factoring companies are seeing the benefit of credit insurance and the insurance companies are willing to give factoring segment another try.
