Credit insurance
Insurance to support debtor management
What is a credit insurance?
A credit insurance is an insurance that is taken out to support a company’s credit management, hence the name. It protects companies against non-payment of outstanding invoices. The goal of the credit insurance is to prevent non-payments having a significant negative effect on the liquidity of your company. In other words, to prevent that you will no longer be able to comply with your current payment obligations.
The non-payment of a debtor can be a major expense, particularly in sectors where large orders are placed with modest profit margins. This can pose a great risk for the health of your business. You want to maintain the profitability of your business and avoid having to file for bankruptcy due to non-payment of invoices. Credit insurance covers you against this risk and these unforeseen costs are fully or largely covered by your insurer, depending on the situation and which type of insurance you take out.
Why a credit insurance?
Why would you take out a credit insurance? Usually this is because of one of the following reasons:
- You want to cover the risk of non-payment and conduct business with less uncertainty.
- You wish to conclude a financing agreement and the bank is only willing if you take out a credit insurance.
If a bank invests in you, they wish to have some surety in order to safeguard their investment. This surety is guaranteed by a credit insurance, where part of the risks are removed. That is why a credit insurance must often be taken out before financing is granted.
However, Dutch Credit Brokers advises its clients to keep the financing and the credit insurance separate. By arranging your financing with a different party than the one granting the insurance, you can optimize the financing, as well as the price.
Additional benefits of a credit insurance
A credit insurance not only covers the risk of non-payment, it also offers your company a number of additional benefits. Credit insurance also offers you:
- access to a significant database with (financial) information on your customers;
- the certainty that your outstanding receivables are collected worldwide by the credit insurer and that the debt collection costs are also covered by the insurance.
Types of credit insurance
There are various types of credit insurances. Depending on your wishes and the sectors you operate in, we will determine which type of insurance best suits your company. In general we differentiate between a credit insurance:
Per debtor
Per transaction
Depending on turnover
Per country
Dutch Credit Brokers feels it is important to find a credit insurance that suits your business operations and not the other way round. Your company must be able to run as it does normally. The conditions of a credit insurance must be to your advantage and cater to your business operations. Only then you will have found the right credit insurance; Dutch Credit Brokers does not settle for less.
Credit insurance expensive?
A barrier for many companies is that they believe that credit insurance is expensive. Nothing is less true! The most expensive and most popular insurance (by turnover) costs on average, depending on the turnover and the damage history, between 0.075% and 0.35% of the turnover. With non-payment of an invoice, this investment is quickly more than worth it and the costs of this converted even lower. In short, it is a small investment for a lot of risk reduction and / or getting financing.
Why Dutch Credit Brokers?
When you take out credit insurance, you want value for money. You don’t want to pay more than necessary. In fact, you prefer to spend as little money as possible. The ideal situation: The cheapest possible credit insurance, but of course with the best conditions and highest limits for your company. In short, the best possible deal! And it is precisely in realizing that that we are the best at Dutch Credit Brokers (as modest as we are).
We are:
- unique as an insurance intermediary, because we are fully specialized in credit insurance and therefore have all the expertise in house to serve you from A to Z (we know all the ins and outs);
- completely independent, so we are not tied to insurers and can guarantee the best deals for you;
- active nationally and internationally and therefore not bound by borders to also provide internationally operating (and non-Dutch) companies with the best credit insurance;
- We are also entrepreneurs, which means that we are not only easily accessible in our communication, but also speak the same ‘language’ and are an equal partner to think along with you;
- specialized in a large number of branches, so we know exactly which risks are in your branch.
At Dutch Credit Brokers, we also do more for our customers. We provide free full service support for the additional processes involved in credit insurance. That means complete unburdening and 24/7 accessibility. You are concerned with what you have always been doing and we do the rest! And that at no extra cost!
Credit insurance deal
Do you want to take out credit insurance with guaranteed the best deal for your company? Fill in the quotation request form as completely as possible. We will find it out for you and list the best deals for you.
Easily save with DCB credit insurance
- The lowest price
- The best conditions for you
- The highest limits!