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Trade credit insurance

A trade credit insurance helps protecting you against bad debts as well as bankruptcies of your customers. Thanks to this insurance, you can grow your business safely, within Belgium and abroad

A trade credit insurance heps 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.

Prevention, collection and compensation, these are the three building blocks of credit insurance. A credit insurance offers you information about the creditworthiness of your customers and prospects, ensures that your overdue payments are collected and reimburses your unpaid invoices.

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 credit insurance consists of customer information, collection and compensation. However, you can also choose to insure a single customer or project. Whatever 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:

Detailed information about your potential
customers

Before you start a business relationship with a customer, you ask for a credit limit. A credit limit is the potential amount of your trade with this company. You will receive detailed insights as well as recommendations on this company. Continuous monitoring and surveillance ensures you real-time information and alarms on potential risks.

Collection of your unpaid invoices in Belgium and abroad

When an invoice remains unpaid and things go wrong, you will always recover most of your money. A professional global debt collection service will work for you in the defaulting country. First, amicably to maintain your business relations as good as possible. Then legally when needed.

Compensation for your losses
 

If our collection service has not been able to recover your money, we will refund your unpaid invoice(s) after 60 days in accordance with the agreed terms and percentage of coverage. The credit limit indicates the amount up to which you are insured.
Thanks to our insightful data, you can immediately react on new opportunities for safe growth. You estimate your risks in advance. You can deliver on credit where your competitors cannot.
A trace credit insurance protects your receivables, your working capital as well as your margins. You reinforce the strength of your business and obtain a pledge of confidence from banks and investors.
With a trade credit insurance, you know the financial health of your customers and you estimate the risks in advance. You choose the most reliable companies to grow and develop your activities.

How much does it cost?

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.

"Uncollectible receivables and dubious trade debits on the balance sheet on average amount to about 0.7% of the total turnover. A credit insurance policy is therefore very cost-effective."

The following factors determine the premium:

  • Turnover of your company. Spread of the risk, as the number of debtors or the distribution over different countries for example or the industry to which your company and customers belong;
  • Agreed delivery terms and payment terms;
  • The additional risk covered, such as political risk and contract or manufacturing risk;
  • Agreed percentage of cover in the credit insurance policy. 

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.

Experience

55,000+

clients worldwide
Knowledge

83 million

businesses monitored
Confidence

AA rating 

by Standard & Poor’s 
The risk of non-payment exists even when your customers are established businesses. Trade credit insurance covers the commercial and political risks that prevent payment of monies owed to you. Use our policies to reduce the impact of customer insolvency and mitigate non-payment risks . We monitor your customers’ financial health and grade them with our scoring system. You set trading limits to control the size and frequency of orders you will accept from new or existing customers. We monitor the grades constantly and inform you of changes based on the financial challenges your customers are facing. You can adjust your trading limits to manage the credit risk. Our debt collection services support your own processes and optimise payment rates. Your banking and commercial relationships can improve when you have trade credit insurance.