Small or large company; appropriate credit insurance is available to everyone.
A credit insurance is not a standard product. It is drawn up according to several factors. Every organization has its own wishes and preferences and every branch or market has its own characteristics. There is a credit insurance that fits, for ever organization and for every market. A credit insurance is not only suitable for big organizations or international companies; it is definitely suitable for SMEand small businesses. On this page, we will explain more about for whom a credit insurance is appropriate.
Shall we go back to the basis “what is a credit insurance”? A credit insurance is an important part of the debtor management and can be called debtor insurance as well. At first, the credit insurance checks the creditworthiness of current and new debtors. The company could anticipate on the creditworthiness and determine more flexible paying terms or, if deemed necessary, be on top of it at all times. Because of this analysis of the creditworthiness, the organization can focus on debtors that are credit-worthy. Moreover, a credit insurance offers a collection system that is covered entirely by the insurance. The credit insurance offers coverage and the organization is insured for potential financial damage caused by default of debtors. Do you want to know more about the benefits of a credit insurance?
By taking out a credit insurance you can protect yourself against possible financial cares that could come from any of the scenarios below. Even one doubtful debtor could cause significant financial damage. What does it mean for the company and the cash flow when invoices remain outstanding due to insolvency of your debtors?
When is taking out a credit insurance recommendable?
• Are you (partly) dependent on your bigger debtors?
• Do you have a small profit margin?
• Does your organization export products?
• Do your organization and the turnover grow, and with that the debtor network as well?
• Did you ever have to coop with non-payments?
• Are you not completely informed about the creditworthiness of your debtors?
• Are you operating in a branch that is sensitive to economic cycles?
• Do you experience a high average duration before invoices are paid?
• Do you want to prevent financial damages due to, for example, bankruptcy of a debtor
If you have answered one or more questions with a “yes”, then is it recommended to take out a credit insurance. We explain what a credit insurance can do for your organization in the article “why take out a credit insurance”.
Almost all SMEs and big organizations experience a debtor risk by default or a high duration before invoices are paid. Do you know what invoices that are paid after term and outstanding invoices could mean for the cash flow and the growth of your organization? For the health of your organization and its cash flow, it is of great importance debtor pay the outstanding invoices as soon as possible.
You can calculate your DSO (Days Sales Outstanding) which determines the average duration before debtors pay their outstanding invoices. A too high DSO will cost the organization a lot of money. Every penny stuck in the outstanding invoices is a missed chance for a new investment.
With over 50 years of experience in the field of credit insurances, we know how the branch works like no one else. As we are associated with several partners, we are able to guarantee the best credit insurance for you. A credit insurance should fit your organization, not the other way around. We familiarize our selfs with your wishes and the offers of our partners, until we find a credit insurance suiting your wishes. In short; we find the best credit insurances.
In a branch in which clarity, transparency and good communication are decisive, we would love to discuss the possibilities in a personal consultation. The consultation is completely free of charge or obligations. Do you want to take out a credit insurance? Contact us now.
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