What is Credit Insurance?

	Risk prevention: Pre-selection of solvent customers
	Debt recovery: Pre legal and legal Management
	Payment of claims: Guarantee against unpaid bills

Credit insurance is an essential tool for managing your trade receivables. In today's business environment, companies like your own are under constant threat from the loss caused by the bankruptcy of a key customer. Even the best credit management cannot guarantee payment. By insuring your accounts, your payments are covered.

	Sell more goods/services on credit terms
	Reduce the risk of exposure to non-payment by your buyers
	Increased financing
	Name your financial institution as "loss payee" to provide the bank with security for bill discounting
	With credit insurance and you will get more favorable financing terms from your Bank
	Stabilize Cash Flow
	Reduce unexpected or catastrophic bad debt losses
	Forecast credit insurance premiums accurately for next year's budget

	Eliminate the need for expensive Letters of Credit
	Develop customers in new markets while armed with knowledge and expertise about those regions

Your credit insurance premium will depend on the policy structure and risk issues. Domestic programs are typically between 0.3% and 0.9% of sales based type of business, your customer base and loss experience. Export insurance can range between 0.1% and 1.0% of covered sales.

	The annual turnover of the business covered
	Previous bad debt losses
	The effectiveness of the credit control system
	Duration of credit given to customers
	The status of the buyers
	The trade sector in which the business operates