A trade credit insurance helps you and your company move forward. It gives you a good night rest. A trade credit insurance in short:
We monitor the financial health of your customers and keep you informed - in real time - to enable you to trade with confidence. We take care of the procedures of collecting your unpaid invoices. In case of non-payment of your invoices or the bankruptcy of one of your customers, you will be indemnified for the goods and services you have delivered.
There are many reasons why customers don't pay their invoices (anymore). A bankruptcy, a miscalculation or a temporary setback. With credit insurance you protect your company against the risk of non-payment and ensure that your business can safely operate and grow.
The most complete trade credit insurance consists of customer information, collection and compensation. However, you can also choose to insure a single customer or project. Whatever trade credit insurance you choose, you no longer have to worry about the payment of your invoices.
If you opt for a trade credit insurance, you will benefit from the following services:
For certain types of credit insurance, such as our SME solution Simplicity, you pay a fixed premium, depending on your turnover. For most policies, the premium is calculated as a percentage of your turnover.
In addition, you pay a limit fee for each limit you apply for. Usually the percentage is less than 0.5% of your company's turnover.
The following factors determine the premium:
ABC is a Belgian company located in Gent. Founded in 1912, it has specialised in the manufacture and delivery of engines. In order to grow its business abroad safely, ABC needed expertise in local markets as well as a strong financial security. Euler Hermes has proven to be the ideal partner to accompany its desire of expansion: attentive, tailor-made offer, good coverage and price, as well as speed and efficiency in delivery.
The Global Leader in Trade Credit Insurance, has proven to be a great contributor to the development of ABC as well as to the global growth of it business. In addition and thanks to its Cover One solution, ABC is ensured to be paid on time for the delivered products and can grow its business in all serenity.
Watch the video of Diederik De Lentdecker, Chief Financial Officer at ABC.
Just a few instances of failure to pay can compromise your cash flow and have a considerable impact on the health of your business.
For example, if you have a 5% profit margin and you suffer a € 100,000 debt, you will need to win sales of € 2 million to make up for the lost profits.
In addition, your financial position can be weakened by bad debts through different potential case scenarios.. For example, in the case your cash flow might be affected, you will have less capacity for investment. Banks and financial providers could charge you higher interest. The morale of your employees may be affected if they become worried about their future in the business.
Consider these effects and what they might cost when you think about the value you will gain from trade credit insurance.
Whatever the size of your company, you can optimize the management of your customer risk with a trade credit insurance adapted to your needs. You can thus sell on credit safely, without fearing the consequences of unpaid on your cash flow.
Every business can benefit from good credit management. Trade credit insurance is one of the most important tools for that purpose. If you are selling on open account terms to other businesses then trade credit insurance could bring many benefits. Even if you trade on other terms, we have services that can support and strengthen your trading activity.
We have designed a range of trade credit offers for different types of business and transactions. Please get in touch with us to discuss what would be most suitable for you.
Even if you have a strong relationship with your customers, they are not protected from financial difficulties
Monitoring the financial health of your clients and assessing the risk of non-payment requires real expertise in data collection and analysis. We propose you our expertise to protect your company and develop your business.
