Credit insurance can be an important strategic tool for banks. When doing business with companies with credit insurance coverage, banks can be more comfortable lending against those clients’ accounts receivables. This, in turn, creates more opportunities for banks to lend more money to more clients while still managing their own risks effectively.
By partnering with Euler Hermes, banks can:
The Strength is in the Details
Trade credit insurance is unique in its ability to conform to the specific needs of each business. Some companies want to cover the entire base of their accounts receivable while others prefer to focus coverage only on certain customer segments. No matter what approach they take, these covered companies represent a lower risk to any bank lending money against the insured receivables.
Any companies with B2B credit sales over $4 million can benefit from trade credit insurance, including manufacturers, wholesalers, distributors, service providers, and many others. Companies that are growing their business and sales, involved in export, in need of working capital or have concentration risks are all good prospects for trade credit insurance.