What is the cost of a Credit policy?

Each application is assessed and priced on the accuracy and depth of the information provided. Accordingly, the premium cost of a credit insurance policy is determined by a combination of the following aspects of the applicant’s business:

• Previous bad debt experience
• Level of projected sales
• Trade sector
• Export markets and those countries’ risk rating
• Analysis of the sales ledger by number and size of debt
• Credit standing of the principal customers
• Credit management system

The most common methods of charging premium are as a percentage rate on turnover or as a fixed amount.