The right credit insurance in each industry

Is credit insurance profitable in your industry?

Credit Insurance branche

Credit insurance is an essential part of credit management. Credit insurance is suitable in almost any B2B industry, as companies supply other companies on credit. What does it mean for your organization if you have delivered products and / or services but payment from your customer is not made due to insolvency or suspected insolvency? In that case, there are costs without any turnover that is achieved. This may eventually ends in a finanial instability for your company.

To ensure a healthy financial continuity of your company, it’s advisable to take over a credit insurance. Credit insurance is a small investment that offers security, protection and up-to-date information. By taking out credit insurance, your organization can be sure that the products and services that are delivered on credit are actually paid for.

What does credit insurance do?

Credit insurance is a supporting part of credit management. The most important part of credit insurance is payment in the event of default. If your organization has provided services and products but the customer is unable to pay the outstanding invoices for these products or services due to insolvency, then this will - without credit insurance - be booked as debtor losses. When you take out credit insurance, you have the certainty that the realized turnover will actually be achieved.

In addition to the payout, credit insurance offers two more important components. These components can be included in the policy. A credit check is one of these two parts. The creditworthiness check is a check by the credit insurer on your existing and new debtors. The debtors are checked for their financial health. With this up-to-date information you can relax the payment policy to gain a competitive advantage.

The third part is the collection system. If a payment is not made, the debt collection department of the credit insurer will work for you free of charge to collect the outstanding receivables. If the debt collection department fails, the damage will be paid out by the credit insurer.

Is credit insurance suitable in your industry?

Credit insurance is suitable when you deliver on credit. Is the profit margin in your industry low or are there many external risk factors? Then taking out credit insurance is always advisable. The premium level of a credit insurance is usually between 0.075% and 0.35%.

Do you want to know more?

Would you like to know more about credit insurance? Or would you like free and non-binding advice? Please contact us via the contact form. In a personal consultation we can explain what credit insurance can mean for your organization.