Buyer A
- Credit rating:
- OK
- Risk:
- medium
Buyer B
- Credit rating:
- Bad
- Risk:
- high
Buyer C
- Credit rating:
- Good
- Risk:
- low
Buyer D
- Credit rating:
- Bad
- Risk:
- DANGER
Credit insurance protects your business from the risks of non-payment of invoices. This means your accounts receivable are covered. So if your customer can’t pay you, you’ll still get up to ninety percent of your money.
The best credit insurers get to know you and your business. They work in partnership with you, supporting you with up-to-date intelligence on the risk of specific markets and sectors. You can use this information to help explore new markets with confidence and offer competitive credit to customers. It also gives you a layer of security that banks tend to like when approached for finance.
We are one of the world’s leading providers of credit insurance. Let us introduce ourselves, and learn more about Atradius, at www.atradius.us
"Without credit insurance a small company like ours could not afford to take the risk of selling to many markets that require payment terms, especially to unknown buyers and new markets.”
How credit insurance works
You can use credit insurance as a tax-deductible business service. It can be a requirement of your management board and you might find it a great support when seeking finance from banks. Credit insurance is suitable for most businesses, from SMEs to large multinationals. It can be used for both domestic and export trade.
Stage 1 Agree on a credit limit with your customer
With credit insurance
Little to do
Your insurer will work with you and research your buyers.
Get a credit limit for your buyer from your insurer.
Without credit insurance
Lots of work
Do your research or pay for an agency.
Employ a credit agency to check your buyer. Choose to either:
- Take the hit if your buyer fails to pay
- Make your buyer get a Letter of Credit from their bank
- Outsource the invoicing to a factoring company
Slide 1 of 4
Stage 2 Deliver your goods and submit your invoice
With credit insurance
Focus on your work
One less thing to worry about.
Just do what you do best.
Deliver your goods or services, send your invoice and get on with your business.
Without credit insurance
Cross your fingers
Trust your luck and hope your customer pays.
Depending on what you did in Stage 1 you can:
- Submit your invoice and hope for the best
- Submit your invoice to the factoring company
- Submit your invoice and meet terms of Letter of Credit (such as gathering evidence of goods or services delivery).
Slide 2 of 4
Stage 3 Customer Bankrupt!
With credit insurance
No problem
Your insurer will work with you to sort it out.
Customer can’t pay? Let your insurer know and they’ll settle up; either through debt recovery or a pay-out.
Without credit insurance
This could hurt
Any way you look at it, it's a loss.
Unpaid invoices? Depending on what you did in Stage 1 this means:
- Self-insured? Ouch!!
- Factored? You’ll get paid but check the small print, your next invoice might have different terms
- Letter of Credit? Gather all evidence. Miss a bit of evidence and you could miss a lot of money.
Slide 3 of 4
Stage 4 What's next?
With credit insurance
You'll get paid
Claim back almost all outstanding debt.
There’s nothing to see here. Your business operates as usual. Return to Stage 2 and continue as before.
Without credit insurance
No money and lots of work
Find a good lawyer. You'll need one.
If you’re still solvent, return to Stage 1 and start the process over. Bear in mind factoring and Letters of Credit terms may be different as a result of the debt.
Slide 4 of 4
How is your premium calculated
Pricing is based on a small percentage of your annual sales depending on a number of factors.
Factors that affect your premium:
Turnover
The greater the amount that needs to be insured, the higher the premium will be.
Sector
Some sectors experience greater market volatility. Risk will be reflected in the premium, with sectors closely monitored for change.
Credit
The amount of time you allow your customer before they have to pay you is factored into the premium.
Countries
Whether through infrastructure, politics or conflict, some countries pose less trading risk than others. Your premium allows for this.
Examples are for illustration only. Individual risk factors are identified, assessed and monitored for each policy.
Get in contact
If you have any questions or need advice regarding credit insurance for your business we can help. We provide credit insurance for more than 1200 businesses in the USA ranging from start-ups and SMEs to large multinationals.
We are where you are. We’re present in more than 50 countries and work from more than 160 offices worldwide.
Talk to us. Our expert advisors will help you get the necessary cover, appropriate for your needs.
Phone: +1 800-822-3223
Hours: 8:30 AM– 5:00 PM Monday to Friday
Instead of blindly going into a relationship with a new customer, we can leverage the information Atradius has in its database to approve credit on potential new customers before the first order ever ships. This gives us a level of security that we wouldn’t otherwise have
Learn More
Credit Insurance
Trade with confidence and explore new markets, protected from risks.
Free Reports
Access free market intelligence to help you identify business opportunities.
Debt Collections
Expert debt collection is included as part of your credit insurance policy.
