FREQUENTLY AKSED QUESTIONS

Who are we?

Euler Hermes Group is the world's leader in trade credit insurance with presence in 53 countries and a market share exceeding 36%. Nature of business activity is to ensure claims for the supply of goods and services in the event of default and provide support for recovery of debts.
Its policyholders are companies producing or distributing, performing acts of local trade and export. And trade relations with Romanian partners with providers enter insurance policies in which Euler Hermes Euler Hermes approved credit limits required by them.
Companies trade credit insurance against the risk of default claims. If one customer can not pay then Euler Hermes indemnify the insured for unpaid bill.

Why we need information about your company?

Recent financial statements or other financial information allows us an accurate assessment of your company and the decision of the credit limit adapted by the company. Based on the analysis of financial statements will support business relationships with your customers.

What can happen if you do not want to provide us with this information?

A lack of information on your company can lead to adverse decisions on credit limits available - reducing exposure or a negative response to the request for credit limit.
In such cases some of our policyholders can use to reduce the supply or change the payment deadline.

Who will have access to the information sent?

Only employees of the Euler Hermes Group has access to information. At your request we will keep the information confidential.

Our financial situation is good. Why does the supplier to ensure deliveries to us?

Our type of insurance includes basically the entire turnover of the insured (s). Therefore, we request credit limit provider for all customers in its portfolio.

Our philosophy

We believe our customer around to better understand the work carried on and the market where it operates.
This helps us to make the right decisions based on date and relevant information.
To achieve this goal we are to have direct contact with all involved, even more than before

What to do?

For submission of financial statements or other documents to review and approval limits for new limits, please use the following e-mail: EHRO.financials @ eulerhermes.com

What is trade credit insurance?

Trade credit insurance provides your business with protection against the failure of your customer to pay its trade debts. This can arise because your customer becomes insolvent or because your customer does not pay within the set timeframe. These risks are usually described as commercial risks.

Who uses trade credit insurance?

Any business selling on open account terms to other businesses can benefit from trade credit insurance. Euler Hermes’ customers range in size from small businesses to large, multi-national companies. Firms in most sectors of the economy - including business services as well as those trading in goods - use trade credit insurance.

What credit terms can be protected?

Business credit insurance is for short-term trade accounts receivable, those due in less than 180 days.

Are there any sales minimums?

From a practical standpoint, you generally need annual sales of at least €1,000,000 to make the program cost-effective.

Why should I consider trade credit insurance?

On average, 40% of a company's assets are in the form of trade debts. Sometimes the figure is far higher. It is very difficult for a company to predict which client will default on payment. Close to 50 percent of all payment defaults arise from vendors with whom stable and long-term trade relationships have been established. The cost to a business of non-payment can be considerable. For example, if a company's profit margin is 5 percent and one of its customer defaults on a debt of €100,000, the company will have to achieve additional sales of €2,000,000 to make up for the lost profits. More importantly, the lost cash flow could be devastating. Non-payment weakens your company and lowers its investment capacity. A trade credit insurance policy helps in the management of your accounts receivables and compensates you in the event of non-payment.

What are the benefits of trade credit insurance?

There are many benefits including:
- Better credit control and protection against bad-debt losses
- Better risk management through an early warning system bolstered by the Euler
Hermes database
- Better business planning through the elimination of unknown risks
- Improved working capital from your lender because you have enhanced the
quality of your accounts receivable with trade credit insurance
- Better sales targeting, thanks to Euler Hermes credit limits that can
be used to target new customers and markets and monitor existing customers
- The benefit of Euler Hermes’ debt collection capabilities and network
- Improved cash flow, because you receive payment for unpaid invoices that are insured

What if my company hasn't experienced credit losses?

Protection from bad-debt losses is just one of the benefits of trade credit insurance. When your receivables are insured, you can also:
- Safely expand sales
- Secure better borrowing terms with lenders
- Reduce bad-debt reserves
- More confidently achieve financial objectives.

Can I just cover the accounts that I am worried about?

No insurance program can work over the long-term if only questionable buyers are covered. But more specifically, no one can accurately predict when a company may fail. Euler Hermes underwrites on a whole turnover basis. This provides the biggest value to its clients and supports a long-term relationship.

What is the level of indemnity?

The level of indemnity is generally 80%; however, the level may be increased to 90% with an additional premium.

If I incur a loss, how soon will a claim be paid?

Generally, in case your customer becomes insolvent, the claim will be paid within 30 days after submission of the documentation required.

How much does trade credit insurance cost?

The premium is calculated on a percentage of your sales. This rate is generally less than 1%, depending on the trading history and historical debt loss of your company, your trade sector and your customer base

Why choose Euler Hermes?

For more than 100 years, Euler Hermes has protected companies in nearly every industry against unexpected bad-debt losses. The Euler Hermes group has offices in more than 50 countries across six continents with 6,200 employees.
Euler Hermes supports its clients in all aspects of credit management. Its underwriters are industry specialists who will work closely with you to supply in-depth credit analysis and ongoing account monitoring to provide early warning of potential credit risks - before they become a loss.