The cost of a good credit insurance

We tell you more about the cost of a credit insurance

What does a credit insurance cost?

Are you considering to take out a creditinsurance, but do you first want to know about the costs of a credit insurance? With every investment, insights into the costs is an important aspect. After all, you can only make a well-considered decision when you have clear insights into the important aspects. The premium costs are an important factor, decisive of whether the credit insurance is profitable for your organization. 

Within an industry in which communication is important as this, we like to be as transparent as possible. This transparency and clear communication of The CreditInsurers is after all one of the reasons many companies and organizations have chosen to work with us. On this page we will elaborate further on the costs of a credit insurance. 

Multiple determinative factors

Although we attempt to be as transparent as possible, is is hard to provide the specific costs for your company or organization. The precise costs are dependent of the next factors;

• the turnover of your organization
• the industry in which you operate
•  the kind of policy (kind of credit insurance)
•  the payment terms and delivery time
• the additional risks
•  the debtor balance

These are the most important factors. However, there are more factors determinative for the premium level. The premium level is normally between 0.075% and 0.35%

Credit insurance costs compared

Many companies believe the costs for a credit insurance are too high and, that in most cases, it will cost more than it will make. However, on the basis of statistics and researches, it can be proven that debtor losses are usually higher. Research shows that 2.2% of the invoices are irrecoverable. Moreover, the percentage for irrecoverable invoices is higher in other European countries. This holds that, when only looking at the numbers, the premium costs of a credit insurance are lower than the amount of irrecoverable invoices. 

Multiple non-measurable benefits

Next to the coverage against no-payment, multiple benefits of a credit insurance are applicable for your organization. For one, you can rely on the knowledge and expertise of the credit insurer. Moreover, you can make use of the creditworthiness check to gain competitive advantages and you will more easily receive credit from banks as you have limited your risks. When you weigh in these benefits, a credit insurance is, just like any other investment, a chance and not just an expense.

Example

Below, an example of a company that did not take out a credit insurance is displayed. 

The company had build a fruitful relationship over the years with one of its clients.
The client was suddenly declared bankrupt without any signs. The outstanding invoice of €35.631,- remained unpaid due to insolvency. 
The company had a profit margin of 20%. This means that, with a profit margin of 20%, the company had to achieve €178.155,- of additional revenue to be able to cover the losses. A credit insurance would have cost only a fraction of the revenue.

Do you want to know the exact costs per year of a credit insurance?

The above mentioned numbers are an indication of the costs of a credit insurance. The Credit Insurers can find the best quotation of every company or organization. With over 50 years of experience in credit insurances, we know exactly what needs to be considered. Moreover, the Credit Insurers are an independent party associated with all credit insurance providers, which enables us to compare quotations of all providers. Because providers are aware that multiple providers bid along when we file a request, we are able to find the best quotation. Providers offer sharp quotations because of this. Beforehand, we are able to say that you could safe up to 25% on the premium level when you take out a credit insurance through us. 

Contact us right away for a personal consultation, completely free of charge and obligations. In this personal consultation, we will discuss all possibilities with you in a clear overview.