1. Grow your
business with
credit insurance
Euler Hermes North America
For more information call 1-877-883-3224,
email eulerhermes.usa@eulehermes.com or
visit www.eulerhermes.us
Average A/R Balance $5,000,000
Total Yearly Sales (Revenues) on Credit $30,000,000
Gross Profit Margin from Sales 10%
Total Number of Credit Customers 50
Turns (how many times you sell to a customer in a
year)
6
Estimated Premium $45,000
Average Credit Limit - Size of A/R per Customer $100,000
Based on the Gross Profit Margin, this is the amount
of additional Revenue you need to pay off the cost of
the policy
$450,000
Based on the average A/R per customer, this is the
number of new shipments you need to justify the
policy.
4.5
Based on the number of Turns, this is the total
number of new customers you need to add to
justify the policy.
.75
The extra sales revenue you’ll earn by increasing limits can offset the cost
of a policy many times over. Below is a sample return on investment with
a Euler Hermes trade credit insurance policy in place. This policy more than
pays for itself by enabling sales to just one additional customer.
Euler Hermes trade credit insurance
solutions allow you to:
• Expand your sales safely, offer better terms to new customers and
raise limits for existing customers.
• Avoid bad debts and prequalify trading partners by utilizing our
proprietary database to evaluate the credit risks that could impact your
customers’ creditworthiness and your bottom line.
• Increase your competitive advantage by offering open terms
overseas and eliminating the need for cash in advance or letters of credit.
• Reduce bad debt reserves and reallocate the capital toward growing
your business.
• Obtain more favorable financing options since insured receivables
translate to secured collateral.
• Reduce your tax burden by leveraging credit insurance premiums as
operating expenses as opposed to bad debt write offs that reduce your
profit.
Growing your business can mean taking on more risk. Protecting your accounts
receivable with credit insurance supports sales growth while managing your exposure.
Credit insurance delivers the peace of mind that you will get paid for what you sell.