Page 71 - Export and Trade

Don’t overcomplicate your decision
about whether to use credit insurance

SHOULD I INSURE MY RECEIVABLES?

I’ve been doing business with
Would credit insurance my customers for years. how
Do I have a lot administration be time well do I really know them?
consuming? g g g
Is credit of bad debts?
insurance
too expensive?
Credit insurance and collections
administration can be directly
Have I experienced
Does credit insurance over the past 3 years? integrated into my own, limiting
any payment defaults
cost less than my bad
my administration workload
m
a a
debt expenses?
I spend a lot of
w my business e monitoring the
ditworthiness of
hi
a
more effectively if ustomers?
m
s
have external cre
management sup
A long business
How much more relationship does not
revenue do I need ensure my buyers’ future
to recover a bad success or that they will
receivable loss? Do I really want to bear the let me know that things
are going poorly
risk of payment default?
Additionally, our
relationship could
cloud my objectivity
At a 10% margin I
will have to sell 9x
e
e e v
h h
the am nt of the
unpaid inv v oice just to
recover the loss. Is
h t th
$2 per $1,000 of Don’t insure
Don
D D
revenue expensive receivables
e e e
compared to this?
I’d rather do
Are there pr cts that my own thing
will improv
manage
limiting m
exp
Insure
receivables
atradius.co.nz
www. .a
credit ins urance | d ebt collection | business information