Euler Hermes launches trade credit insurance solution for Canadian small businesses

02.02.2016
 

 

MONTREAL – FEBRUARY 2, 2016Euler Hermes today announces the launch of Simplicity, the first customized insurance product to cover micro and small businesses’ domestic and export sales from customer nonpayment. The product is designed to help small businesses mitigate their accounts receivable risk in a quick, simple and affordable manner, while at the same time maximizing business growth. 

Simplicity is designed specifically for businesses with less than $5 million in annual sales. The product is intended for companies that are new to credit insurance – it provides a short, clear policy, transparent coverage on all buyers within just one day, and fixed pricing. Policyholders can automatically and immediately protect domestic and export buyers in 32 countries, allowing them to focus on safely growing sales without the worry of non-payment.

“According to a recent survey, maintaining sufficient cash flow and managing debt levels are some of the top concerns for Canadian small businesses ,” said David Dienesch, CEO of Euler Hermes Canada. “Simplicity protects small businesses from unpaid invoices, which can be devastating, and lets them safely and strategically offer credit to their domestic and international customers.”

In today’s uncertain economic environment, small business owners constantly face new challenges and barriers, while remaining a critical engine for economic growth and job creation. Small businesses represent 98.2 percent of Canada’s employer business and have created 77.7 percent of a private sector jobs since 2002, according to Innovation, Science and Economic Development Canada. Together, small- and medium-sized enterprises (SMEs) account for 52 percent of private sector gross domestic product (GDP). 

Simplicity helps small businesses address these concerns by combining the established expertise of Euler Hermes’ global risk experts with tailored solutions unique to small business needs. Easy to purchase and administer; it eliminates the need for bad debt reserves and frees working capital for product and customer relationship development. Simplicity also provides insights on potential customers, which small businesses often have difficulty accessing.

For Euler Hermes’ customer Packaging Methods Defined, trade credit insurance was critical when the company suffered a six-figure nonpayment by a much larger customer. 

“I’m living proof of the importance of credit insurance for a small business,” said Izzy Eisenberg, the company’s owner. “That nonpayment could have put me out of business if I didn’t have credit insurance. Sometimes companies set aside a certain amount – maybe ½ percent – as a bed debt reserve. That used to work back in the day, and might work for a larger company, but now it’s scary. Euler Hermes gives me a lot more strength than I would have on my own.”
 
More information about Simplicity is available at: http://www.eulerhermes.ca/en/credit-insurance/our-solutions/Pages/simplicity.aspx. In operation since 1923, Euler Hermes Canada is a branch of Euler Hermes North America Insurance Company (head office in Owings Mills, Maryland) and is the oldest and largest private carrier of trade credit insurance and accounts receivable management solutions in Canada.