Credit insurance for small and medium enterprises - Optim@
At the moment this product is being adjusted on the Czech market.
Euler Hermes Europe SA also offers a special product for the SME segment. It is based on our parent company Euler Hermes Group’s many years’ experience around the world.
The product is primarily designed for companies that make a total turnover of up to CZK 150 million. For this segment it offers the ideal ratio between the maximum scope of insurance at a very competitive price and the minimum administrative workload on the one hand and a limited possibility for changes and high standardisation on the other.
This product is designed to minimise these risks. It does so in the following ways:
1. sound assessment of new business partners, localy and all over the world;
2. insurance of existing business partners and monitoring their solvency;
3. helping manage receivables;
4. helping collect debts.
The product’s principal features are:
• administrative simplicity;
• maximum scope of insurance coverage (insolvency, payment default);
• administratively simple fixed-rate insurance of smaller customers (up to CZK 300,000 unpaid receivables balance);
• maximum scope of insurable countries;
• shortened waiting time for indemnification (4 months)
• comprehensive coverage of the client’s entire insurable turnover against payment risks;
• online offer of the main parameters of the insurance contract;
• option of concluding a contract quickly and easily without the need for meetings in person;
• complete online administration of insurance policies;
• integrated and competitive collection of debts by the insurer;
• much lower minimum annual insurance premium
(CZK 30,000);
• calculation of the insurance premium rate and fees is the same as for big companies – smaller clients are not disadvantaged.
In order to ensure the maximum insurance coverage and administrative simplicity when the insurance contract is being negotiated, the product’s parameters and tariff are based on the company’s total insurable turnover.
The main advantage of this product is that it automatically secures the payment risks of all business partners up to CZK 300,000, without the need for individual checks, provided that the simple condition of a positive payment track record is satisfied. Bigger customers should simply be reported individually, and the insurer then checks them out and monitors their creditworthiness.
If a customer does not pay on time, the receivable is transferred to the Euler Hermes Service for collection.
If the insurer is also unable to collect the debt, then after a shortened waiting period, which in this case is 4 months after it is transferred for collection, indemnification is paid out (minus the client’s 20% co-participation).
This integrated debt collection system means that the client does not have to collect the debt and ensures that the debtor is put under maximum pressure via a global credit insurer.
Česky
Euler Hermes Group
