How does euler hermes work

Euler Hermes offers you and your company a complete package of services that guarantee your liquidity and at the same time verify the liquidity of your clients and business partners. In this way, we can protect you against economic risks such as sudden insolvency, so you can decide on the right deals. Together with our customers, we take the future into our hands and give you the self-confidence necessary for long-term success.

With our know-how, you can permanently reduce your costs, maximise profits and use your existing capital in a target-oriented manner where it makes sense. Open with Edge. About Euler Hermes. Contact us. At Euler Hermes, we see to it that you can pursue your business activities with confidence. You should always ensure that your efforts bear fruit, especially when your business involves large sums of money and you want to embark on partnerships and projects with other companies and business partners.

Suffering from an unpaid invoice can feel overwhelming. Contacting the client in a courteous way should be your first step. Learn more about how to get a client to pay an invoice. Unpaid invoices are serious threats to businesses' financial growth. Read these 10 tips from Euler Hermes on how to detect signs of customer non-payment here.

When growing a business, it is important to be data-driven in your approach. Learn how to leverage big data to grow sales and beat out the competition. Get helpful tips here.

Open with Edge. What is Trade Credit Insurance Coverage? It ensures that: Capital is protected Cash flows are maintained Loan servicing and repayments are enhanced Earnings are secure While commercial credit insurance can be a smart investment for many companies, it may not be the best choice to companies that sell exclusively to governments or retailers since trade credit insurance only covers business-to-business accounts receivable.

Get the complete guide to credit insurance Learn about all things credit insurance all in one place. This is the perfect starting point if you want to understand how a credit insurance solution could help your business. Download Your Copy. Benefits of Trade Credit Insurance Coverage While trade credit is a powerful commercial tool for conquering new markets and building customer loyalty, it is also a double-edged sword that can weigh on your working capital and cash flow.

Trade credit insurance also: Allows you to substantially improve your DSO Day Sales Outstanding , which is the average number of days it takes to recover a payment after a sale is made. Guarantees your ability to manage your operations and investments efficiently in the short and medium term and to secure your growth. Offers peace of mind to your finance partners, reassuring your bankers or shareholders about the financial stability of your company and giving them a greater inclination to guarantee your financing.

Protects and accelerates your commercial development while controlling the risks that trade credit poses to your cash flow, giving you the advantage of an efficient and resilient trade credit strategy. Companies invest in trade credit insurance for a variety of reasons, including: Sales expansion — If receivables are insured, a company can safely sell more to existing customers, or go after new customers that may have been perceived as too risky.

Expansion into new international markets — This insurance protects against unique export risks and delivers market knowledge to help you make more informed growth decisions. Better financing terms — Banks will typically lend more capital against insured receivables and may also reduce the cost of funds. Reduction in bad-debt reserves — Insuring receivables frees up capital for the company.

Also, credit insurance premiums are tax deductible, but bad debt reserves are not. Protection against non-payment and catastrophic loss — Should an unforeseeable event catch a company and its insurance carrier without warning, the bill gets paid via the claims process.

In many cases the bank will require trade credit insurance to qualify for an asset-based loan. Whole Turnover — This type of trade credit insurance protects against non-payment of commercial debt from all customers.

You can choose if this coverage applies to all domestic sales, international sales or both. Key Accounts — With this type of insurance, you choose to insure your largest customers whose non-payment would pose the greatest risk to your business. Single Buyer — If most of your transactions are with one customer, you can choose a trade credit insurance policy that insures against potential default from just that customer. Transactional — This form of trade credit insurance protects against non-payment on a transaction-by-transaction basis and is best for companies with few sales or only one customer.

Comparing Trade Credit Insurance to Alternatives Self-insurance, an alternative to trade credit insurance, means a business puts a reserve on its balance sheet that covers any potential bad debt for the fiscal year.

Discover surety bonds and guarantees. Safeguard your business integrity Protect your business against cyber crime and fraud thanks to our policies, and be indemnified in the event of a claim.

Discover fraud insurance. Empowering global trade Protect your business against cyber crime and fraud thanks to our policies, and be indemnified in the event of a claim. We focus on understanding your needs, your markets, your challenges and your expectations for tomorrow.

Our goal is to support your short and long term goals in order to help you make better-informed business decisions. Discover our customer case studies. Great customer experience is now the hallmark of great business. See how our customer service combines people, process and technology excellence to address your problems. When faced with bad debts, your business needs to know it can count on an insurance safety net.

Learn how our experts handle claims swiftly and smoothly, from filing to indemnity payment. Economic disruption has triggered a sharp rise in late payments. Find out the critical role our credit analysis and risk underwriting teams provide and how they can help bring more confidence to your business decision-making. When a customer buys goods or services on account without paying cash up front, you need to understand the risk involved before agreeing to the transaction.