Credit Insurance
Creative Risk Solutions are working in Partnership with Euler Hermes to provide added protection to our clients business
Reasons why you should consider Credit Insurance:
• Improve sales by understanding how creditworthy prospective clients are
• Provide greater access to finance, making businesses less of a risk to lenders
• Reduce bad debt provision, helping release capital for more productive purposes
• Provide an early warning system to help them avoid bad debt
• Give confidence to investigate new markets or look to sell to new customers overseas
A simple example of how a bad debt impacts business
• If one of its customer goes into liquidation, 76% of the time your client will get nothing
• In the course of a year the average company will lose more than 3 of its active customers because of financial distress, insolvency, administration or receivership
• A £1.5m turnover business earning a 5% net profit margin would have to increase its turnover by 30% to recoup a bad debt as little as £22,500
