Would you like to know what an export credit insurance can mean for the (export) growth of your company?
Taking out an export credit insurance is the instrument to cover trade risks. You want to limit all trading risks, especially when you start exporting. Do you supply products or services abroad and do you think the payment risk is too great? Does your bank limit the credit space due to possible risks? Payment agreements are laid down in a contract, but how are these payment agreements fulfilled? How well do you know the debtor abroad? The right credit insurance is the solution and is therefore indispensable in export. It is therefore not surprising that 45% of Dutch exporters opt for export credit insurance.
A 2010 study showed that every euro generated from insured exports yields more than two and a half euros in total exports. For example, an organization can take the step to export through credit insurance, while they would not dare to take this step without export credit insurance. Both the importer and the exporter can prove themselves as a reliable supplier and payer. The right export credit insurance is the first step in sound export.
Credit insurance can be taken out per customer, revenue and country. With export credit insurance, the credit insurance covers the export of your company. There are always risks associated with the delivery of products and services. This is especially true when a company or organization wants to offer its products or services abroad. After all, it is very likely that the foreign customer, for various reasons, can no longer pay the outstanding invoices. The company can cover itself against the risk of non-payment with an export credit insurance. If the foreign buyer is unable to pay its bill, the financial loss will be reimbursed by the credit insurer.
In addition to covering the risk of non-payment, export credit insurance offers several advantages. For example, a bank is more likely to grant credit when all risks are covered. Credit insurance offers both you and your bank more security. This translates into better credit options.
In addition, credit insurance offers expertise and knowledge. How sure can you be about the creditworthiness of the overseas debtor? An export credit insurance provides the necessary knowledge, expertise, and software. For example, credit insurance offers you the opportunity to 'check' the debtor's creditworthiness.
It is still possible that the invoice is not paid. Think of manufacturing risk. Export credit insurance is advisable even with Letter of Credit. In this way, the credit insurance offers complete security against any type of default.
Export is good for the Netherlands, Dutch exports account for 32% of gross domestic product (GDP). However, private credit insurers cannot always provide export credit insurance, such as credit insurance where the risk is too great, or the period is too long. But to lend a helping hand to Dutch companies, the Dutch government provides export credit insurance in case you cannot turn to a private credit insurer. The export credit insurance was set up together with the Dutch government and Atradius Dutch State Business. If the risk for private credit insurance is too great, please contact the Credit Insurers. We are happy to help you with this export credit insurance!
With over 40 years of experience in credit insurance, the Credit Insurers have largely provided export credit insurance. We are therefore an expert and reliable party when it comes to export credit insurance.
Would you like to supply services or products abroad and are you still unsure about the possible trade risks? In a personal consultation we will gladly offer you a strategy and tell you more about the right export credit insurance. Contact us now for a free, non-obligatory consultation.