Cover for Bad Debt Losses - Euler Hermes Kreditversicherungs-AG

will result in a renewed upward curve in
international insolvencies in 2012. After the
drop of 3 percent in the preceding year, Euler
Hermes predicts a rise of 3 percent in 2012.
In Europe, the figure should even shoot up to
12 percent in 2012, Greece contributing
26 percent, Spain with 20 percent plus and
Italy up by 15 percent.
Beyond their own borders, German companies
will face further problems in coping with
the dangers: information on foreign business
partners are not easy to come by and frequently
also just as difficult to interpret.
Foreign languages, legal systems and business
customs, e.g. longer payment terms – all
these combine to increase the risks involved.
Extra sales needed
to offset a bad debt loss
4
Bad debt losses through
customer insolvency in TEUR
What can you do?
Necessary extra sales in TEUR –
at a pre-tax percentage return on sales of
2% 4% 6%
10 500 250 167
25 1,250 625 417
50 2,500 1,250 833
100 5,000 2,500 1,667
Three things are particularly important
in reducing bad debts for your company
to a minimum:
clear contracts with your customers
consistent management of your out stan ding
debts with ongoing monitoring of customers’
creditworthiness and
taking out commercial credit insurance
with an integrated debt collection service
just in case things do go wrong
This brochure gives you in-depth information
on all three of these points and good tips
on what to do. So that the money you are
owed is secure and your company actually
gets what it has earned!