What is the Impact of Unpaid Invoices?
Your Business Can Suffer, If Invoices Are Not Paid On Time
25% of bankruptcies are due to unpaid invoices
You grant payment terms to your customers every day. And because it’s a routine way of doing business, you may not be thinking about the risk you’re taking.
But what happens when a customer defaults? When a business closes down? When a government suddenly forbids transfer of payments or declares a devaluation?
You might have never experienced any of these situations before, but you ought to know that 25% of bankruptcies are due to unpaid invoices.
How much of your total assets do unpaid invoices represent – and merit protecting?
AND YOU ? DO YOU KNOW THE IMPACT OF AN UNPAID INVOICE?
In your case, for a debt of 50.000, your company needs to generate additional turnover of
500.000 if your operating margin is 5%.
COFACE CREDIT INSURANCE
Credit insurance helps:
- Lower Bad Debt Insurance
- Protect your balance sheet
- Reduce the cost of bad debts
- Optimize your cash flow
A CREDIT INSURANCE POLICY COVERS THE UNPAID CREDIT BALANCE FROM SALES MADE TO YOUR CUSTOMERS.
With Coface credit insurance, your business is protected against losses from bad customer debt, which affords you greater peace of mind to focus on your company’s success. It is a type of business insurance which covers losses arising from non-payment for goods or services. It is a powerful tool that combines the information and protection you need to mitigate the risk of non-payment. If you have a loss on an insured account, you will be indemnified according to the terms of your policy.