Cover for bad debts
Credit insurance is the most economic and the best way to secure your receivables, insurance premium is usually just a fraction of a percent of the insured turnover.
The insurance covers trade credit that the insured provides to its buyers when supplying goods or services (Term of payment 30, 60 days; max. 360 days) and situations where the buyer does not pay in consequence of:
• Presumed insolvency (e.g. 5, 7 or 9 months after the due date)
• Insolvency (bankruptcy, composition, distraint)
A framework contract is signed with the insured, after which the insurance company approves a guaranteed “credit limit” for individual buyers.
The credit limit is the upper limit of the credit risk that the insurer (the insurance company) assumes in respect of one debtor (a customer of the insured).
The insurance company also offers the client the option to overtake the collection of owed receivables and the costs of this collection are also insured.Self-retention does not apply for the collected amounts.
Debt collection
Insurance premium is usually paid in several instalments (most commonly four instalments) that are evenly spread and invoiced through over the insurance period. The amount of instalment is based on the insurance premium rate agreed in the contract and on an estimate of the insurable turnover.
Alternative method (requiring more paperwork): The insurance premium can also be invoiced monthly on the basis of monthly reports of realised insured turnover or unpaid balances of accounts receivable.
If you are interested in a free offer, please fill in the questionnaire.
Česky
Euler Hermes Group
