What is trade credit insurance?
Trade credit insurance protects you against the risk of non-payment of your business customers in Belgium and abroad. You are informed in real time of the financial situation of your customers. In case of non-payment, you benefit from targeted recovery actions. If your claim is not recovered, you will be compensated.
How much does trade credit insurance cost?
The premium is calculated according to your sector of activity and the turnover that you realize with private companies. The premium is based on a percentage of your sales, generally below 1%. This amount varies according to the sector of activity or the type of cover you choose.
Remember that premiums go up or down from year to year. They are affected by the losses you have experienced in the past, the customers you deal with and the sector you work in. Covering political risk as well as trade risk costs more. We calculate the best price for your situation so that these factors and your needs are taken into account.
Is trade credit insurance really worth the investment?
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’ll need to win sales of € 2 million to make up for the lost profits.
What kind of business needs 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.
Is trade credit insurance adapted to small business?
If you work in a small business with a turnover of at least € 50.000, there is a simple offer adapted to your needs. Discover Simplicity.
We’ve 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.
I’ve been dealing with the same buyers for years. Do I really need to worry?
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.
What are the benefits of trade credit insurance?
There are many benefits to trade credit insurance. If you have just started with trade credit insurance it can be useful to review your processes and procedures so that you gain the greatest value from your policy. We can advise you on best practice too. Here are some examples of what you can do.
1. Benefit from constant monitoring of the financial situation of customers and prospects
2. Gain responsiveness in accepting new orders
3. Discharge the recovery of the invoices
4. Optimize the recovery rate of outstanding receivables
5. Minimize administrative management costs
6. Preserve the profitability of the company
7. Benefit from expertise of risk professionals
8. Manage the customer portfolio by opting for security
9. Develop the business by being sure to get paid.