What is credit insurance?

We’re your accounts receivable insurer

If your customer fails to pay a receivable, we’ll step in. Credit insurance covers you against loss of receivables.
In export transactions or even transactions within Austria, the buyer may fail to pay the agreed price even though you’ve delivered as agreed. Alternatively, the buyer may, without warning, take out credit with you, the seller, by paying late. Credit insurance relieves you of those risks and protects you from loss. We’re your accounts receivable insurer.

Every loss of receivables calls for even higher turnover.

The additional turnover that a company needs to generate to make up for the loss of receivables is often underestimated. A receivables loss of EUR 12,000 may not seem all that serious, but with a profit margin of 3 %, additional turnover of EUR 400,000 needs to be generated to compensate for the loss.

See here how much additional turnover needs to be generated with a profit margin of between 3 and 12 percent.

loss of receivables

3 % 5 % 8 % 10 % 12 %
5.000 166.667 100.000 62.500 50.000 41.667
15.000 500.000 300.000 187.500 150.000 125.000
50.000 1.666.667 1.000.000 625.000 500.000 416.667
100.000 3.333.333 2.000.000 1.250.000 1.000.000 833.333
200.000 6.666.667 4.000.000 2.500.000 2.000.000

1.666.667

 

Additional benefits of accounts receivable insurance

Tailored risk management

We’re here for you even before a loss occurs. We develop tailored risk management together with you. As a credit insurer, we check your customers extremely thoroughly to minimise the risk of loss of receivables. If something does go wrong, we indemnify the loss.

Focus on emerging countries

Credit insurance is especially important for export transactions. That is all the more the case when exporting to difficult markets. Different legal systems, lengthy lawsuits and the political environment often make it difficult to enforce claims. We specialise in precisely such markets. We’re happy to advise you.

 

Share Tweet Share