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Trade credit insurance, also called accounts receivable insurance, is a financial tool that protects your company from your customer’s failure to pay their trade related debts. This situation can occur if your customer becomes insolvent or if they simply fail to pay within the agreed upon timeframe.

A credit insurance policy with Euler Hermes eliminates one major source of business uncertainty: the impact of unpaid invoices. This assurance empowers you to sell more and to sell with confidence.

How does credit insurance works?

A trade credit insurance policy with Euler Hermes is a dynamic partnership that protects your company against unforeseen bad debt risks. At the onset of the policy, Euler Hermes analyzes the creditworthiness of your insurable customers and assigns them a specific credit limit, which is the amount we will cover should that customer fail to pay.

Euler Hermes then proactively monitors your buyers throughout the duration of your policy in order to ensure your covered buyers’ continued creditworthiness. Your business will benefit from access to our global database with live information on millions of companies, representing 92% of global GDP.

Throughout the duration of the policy, you can easily request new credit limits or additional coverage on existing buyers when those needs arise. Euler Hermes investigates the risks of the new coverage request and will either approve it or preserve the existing coverage, giving a detailed explanation as to why.

By implementing credit insurance, your credit management team is strengthened by the thousands of Euler Hermes risk professionals across the globe; Euler Hermes essentially becomes an extension of your team.

The ultimate goal of a trade credit insurance policy is not just to simply pay claims as they arise, but to help policyholders avoid foreseeable losses. If an unforeseeable loss should occur, the indemnification aspect of the trade credit insurance policy comes into play.

Key benefits

Indemnification against loss is often believed to be the main benefit of a credit insurance policy, but there are a myriad of other benefits that can justify the cost of a trade credit insurance policy many times over – even if you never make a claim. When your receivables are insured, your company can:

  • Safely grow sales, domestically and abroad, to new and existing customers
  • Protect its business from risk of customer default and catastrophic loss
  • Reduce bad-debt reserves
  • Obtain greater access to funding and secure better finance options
  • Expand export markets and offer competitive terms overseas

More information online

For more related information or to find your local solution please visit the website of Euler Hermes:

www.eulerhermes.com

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Allianz operates as an international insurer on almost every continent. We have deep roots in our home market: Western, Northern & Southern Europe. In Central & Eastern Europe and Asia Pacific Allianz is one of the leading international insurance companies. With different emphases we are present in America and Africa.