Reliably protect your liquidity
Learn how nextsure's credit insurance protects your business from payment defaults, secures your liquidity, and ensures financial stability. Get informed now!
Ensure liquidity
Minimise risks
Promote growth
What exactly is a credit default insurance policy?
Protection against loss of receivables
Securing Your Liquidity
Risk Management for Businesses
Strengthening Financial Stability
Why is loss of receivables insurance indispensable for businesses?
In today's dynamic economic environment, unforeseen payment defaults pose a significant risk for any company that offers supplier credit. Credit insurance is essential as it ensures the financial stability and continuity of your business. It protects your equity from unexpected write-offs and preserves your liquidity, thereby strengthening your negotiating position with banks and suppliers. By securing your receivables, you can more confidently explore new markets or establish business relationships with new customers whose creditworthiness you may not yet fully assess. Additionally, such a policy often improves your company's rating, which can lead to more favourable financing conditions. Ultimately, it is a proactive tool that helps you focus on your core business instead of worrying about the risk of unpaid invoices, thereby enabling sustainable growth.
Our Solutions
Your shield against payment defaults
Liquidity Protection
Secure your cash flow against unexpected payment defaults and achieve financial planning security.
Credit check
Benefit from a professional creditworthiness review of your customers to minimize risk.
Debt Collection Service
Optional service for professional collection of overdue claims by experts.
Backup protection
Comprehensive protection against financial loss due to insolvent or unwilling payers.
Export insurance
Secure your foreign business against political and economic risks reliably.
Industry Solutions
Tailored insurance solutions designed to meet the specific needs of your industry.
FlexiTarife
Individually customizable rates and coverage amounts for optimal protection according to your needs.
Claims processing
Quick and straightforward processing in the event of a claim, thanks to our digitised process.
Online portal
Manage your policy, report damages, and check limits easily online via nextsure.
Tailored protection for your claims – digital and straightforward.
Bad debts?
Not with us! Secure now.
Target audiences: Who is credit insurance suitable for?
A credit insurance is generally suitable for all companies that deliver goods or services on account, thereby exposing themselves to the risk of payment defaults. It is particularly relevant for small and medium-sized enterprises (SMEs), as they often have fewer financial reserves to compensate for larger losses. Export-oriented companies also benefit significantly, as they can protect themselves against country-specific risks and the more complex collection of receivables abroad. Sectors with long payment terms or high order volumes per customer, such as mechanical engineering, construction, or wholesale, find an important protective mechanism in credit insurance. Even for growing start-ups and freelancers who wish to actively manage their debtor risk, this insurance can be a valuable tool to gain financial security and establish a solid foundation for business growth. nextsure analyses your individual needs.
An overview of the key benefits of credit insurance
The core service of a trade credit insurance policy is compensation for unpaid receivables due to the proven insolvency (e.g. bankruptcy) or documented unwillingness to pay of a customer. In addition, many policies offer valuable additional services. This often includes the credit assessment of your existing and potential customers, helping you identify risky business relationships at an early stage. Some insurers, like nextsure, integrate or offer optionally a professional debt collection service to support you in recovering overdue receivables. The coverage can apply to both domestic and international customers, with protection against political risks in export business being an important component. The specific services and coverage amounts are tailored individually to your company and its risk profile to ensure optimal protection.
Costs and Premium Calculation of Credit Insurance
The cost of an accounts receivable insurance, that is the insurance premium, is variable and depends on several factors. The key factors are the annual turnover to be insured, your company's industry, and the associated typical risks. The credit structure of your customer base also plays a significant role: a portfolio with many creditworthy customers tends to lead to lower premiums. Other influencing factors include the desired level of coverage per customer and per year, the amount of the agreed deductible in the event of a claim, and your company's previous claims history. The payment terms you grant your customers, as well as whether you operate nationally or internationally, also factor into the calculation. Nextsure creates a transparent and individual offer for you, based on a careful analysis of your specific risk profile and needs, to provide you with the optimal price-performance ratio.
Benefits of Bad Debt Insurance for Your Liquidity
Trade Credit Insurance provides significant advantages for securing your company's liquidity. By protecting against unexpected payment defaults, your cash flow is stabilised and more predictable. You need to retain less capital for potential bad debts, giving you more financial flexibility for investments, operating costs, or growth projects. A secured receivables landscape also improves your balance sheet structure and can positively influence your rating with banks and credit agencies. This, in turn, facilitates access to loans and can lead to more favourable financing conditions. The assurance that your receivables are protected allows you to offer your customers more generous payment terms, which can be a competitive advantage without excessively straining your own liquidity. In short: you convert an unpredictable risk into manageable costs.
Digitale
Claim
Personal
Consultation
Flexible
Tariffs
Procedure in Case of Damage: What to Do in the Event of Default?
When an insured default on receivables occurs, a structured approach is crucial. Firstly, you should promptly and within the stipulated timeframe report the payment default to your insurer. The specific deadlines and reporting formalities are outlined in your policy conditions. Simultaneously, it's important to gather all relevant documents that support the claim. These typically include copies of invoices, delivery notes, reminders, and any correspondence with the defaulting customer. In the event of the customer's insolvency, proof of the opening of insolvency proceedings is often required. The insurer then reviews the reported claim. Following a positive review and any waiting periods or after the completion of the debt collection process (if included), the insurer provides compensation up to the agreed insured amount, minus any possible deductible. A digital provider like nextsure supports you with efficient online processes for reporting and managing claims.
Credit insurance vs. Factoring: A Comparison
Both trade credit insurance and factoring serve the purpose of securing and optimising receivables management, but they adopt different approaches. Trade credit insurance is purely risk protection: it guards against losses due to insolvent customers, by having the insurer pay in the event of a loss. The receivables management primarily remains with the company. Factoring, on the other hand, involves selling your outstanding receivables to a factoring company. This company pays you a large portion of the receivable amount immediately and often takes over credit management as well as the full default risk (true factoring). Therefore, factoring provides immediate liquidity and relieves administrative tasks, but is usually more expensive than pure trade credit insurance. The choice depends on your specific needs: if it's mainly about risk protection, trade credit insurance is ideal. If you need quick liquidity and relief in credit management, factoring might be the more suitable solution. nextsure is happy to advise you on suitable protection strategies.
Tips for Choosing the Right Provider for Your Accounts Receivable Insurance
Choosing the right provider for your trade credit insurance requires careful consideration of various aspects. Pay attention to the financial strength and reputation of the insurer – having a stable partner is crucial in the event of a claim. Carefully compare the terms and conditions: What exclusions are there? What are the deductibles? What deadlines apply for reporting a claim? The flexibility of the policy is also important – can it be adjusted for changing company sizes or new markets? Examine the range of services offered: Are credit checks and debt collection services included or optionally available? The premium amount is, of course, a factor, but it should always be assessed in relation to the protection and service provided. A digital provider like nextsure often scores points with transparent processes, fast claims processing, and easy online management of your policy, saving you time and effort. Obtain multiple quotes and seek comprehensive advice.
What requirements must my company meet to qualify for credit insurance?
Digitalisation is also transforming the area of trade credit insurance. nextsure uses modern technologies as a digital insurance portal to enable you to secure your receivables efficiently, transparently, and user-friendly. Benefit from a fully digitised process—from needs analysis through offer creation to contract conclusion. Our online portal gives you access to your contract data at any time, easy management of credit limits for your customers, and straightforward claims reporting. By using data-driven analyses, we can assess risks more accurately and offer you tailored terms and conditions. The digital processing significantly speeds up processes, especially in the event of a claim, enabling you to receive the necessary liquidity more quickly. Discover the advantages of modern, digital trade credit insurance with nextsure and future-proof your risk management.
