Through our strategic partnership with Comerica Insurance
Services and through their association with Euler
Hermes we are now able to offer our clients access to Accounts Receivable
Insurance (also know as Commercial Risk or Credit Insurance) which protects your
organization against losses arising from insolvencies of buyers in their domestic
or export markets or from political risks.
Euler Hermes ACI was founded in 1893 and is the oldest and largest underwriter
of business credit insurance in North America.
Prevention of non-payment risks
Euler Hermes offers companies expertise in managing buyer risks. Local teams
around the world evaluate the financial position of buyers on a daily basis.
Through its risk prevention services, Euler Hermes helps companies to base their
business development on solvent customers.
Trade debt collection
Euler Hermes is one of the leaders in trade debt collection, with its own specialist
teams throughout the world supported by a network of local correspondents.
Compensation for losses due to buyer insolvency
Losses on unpaid trade receivables covered by Group policies are indemnified at a rate
agreed between insurer and client. The financial strength of Euler Hermes is a guarantee
in protecting the assets of its insured clients.
Credit Insurance Q & A:
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What Credit terms can be protected?
Short term trade accounts receivable, those due in less than 1 year.
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Is there a sales minimum?
Generally, annual sales of at least $1,000,000 make the program
cost effective.
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Who uses credit insurance?
Companies of all sizes, in most sectors of the economy, selling on
open account terms to other businesses can benefit.
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What are the benefits?
Some of the benefits include:
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Better credit control and protection against catastrophic bad-debt loses
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Improved cash flow, payment for “insured” unpaid accounts receivable
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Improved working capital from your lender because the quality of your
account’s receivables has been enhanced with credit insurance
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How much does credit insurance cost?
Premium for the most popular coverage is calculated on a
percentage of your sales. This rate is generally less than 1%, depending on trading
history and historical debt loss of your company, your trade sector and your
customer base.
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Is it difficult to apply?
No, all that is needed is a completed application and a
recent aging of your accounts receivable.
DID YOU KNOW?
On average, 40% of a company’s assets are in the form of trade debts, and sometimes
they can be much higher.
Approximately 50% of all payment defaults arise from vendors with whom
stable and long-term trade relationships have been established