Trade Credit Insurance | Euler Hermes

What is trade credit insurance?

Trade credit insurance covers your receivables due within 12 months against unexpected commercial and political risks (customer bankruptcy, changes to import and export regulations, etc.) so that your cash flow is safeguarded and you avoid bad debt.

If your customers become insolvent or fall into protracted default, you are indemnified for the value of goods or services you have delivered.

How does trade credit insurance work?

1. Customer credit checks

We analyse the creditworthiness and financial stability of your customers.

2. Credit limit calculation

Each of your customer has a limit – the maximum amount we will indemnify if that customer fails to pay.

3. Business and trade as usual

You trade with your existing customers as you wish, with the risk covered up to the limit.

4. Trading limit updates

We keep you informed of adjustments to credit limits as they may be raised or reduced when economic conditions change.

5. New customers

You check the creditworthiness of potential new customers. We confirm agreement or explain if your request is declined.

6. Making a claim

If a customer fails to pay, then you give us full information. We investigate and indemnify you for the insured amount if policy terms have been met.

Top 8 reasons to use trade credit insurance

Protection: protect your outstanding invoices and get your money lost through bad debt replaced quickly
Profitability: improve profitability by safely increasing your exposure to more customers
Information: benefit from regular updates on the financial health of your customers and prospects
Credit control: enhance your existing credit control procedures and manage customer payments more confidently
Competitiveness: remain competitive by offering open credit terms when your competitors can't
Growth: facilitate your expansion by dealing confidently with new clients and increasing credit lines to existing ones
Funding: reassure your financial partners to facilitate access to funding
Peace of mind: optimise the recovery rate of your unpaid invoices and release yourself from the collection of your invoices

Want to know more about Trade Credit Insurance?

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