Euler Hermes has launched Simplicity, an easy to use, ‘off the shelf’ trade credit insurance policy that protects very small businesses from the risk of not getting paid by their customers.
‘Simplicity’ is designed to bring peace of mind within minutes to small firms struggling with poor paying customers. It offers simple pricing, simple administration and a simple and fast claims process on all debts over £200 so that if a payment remains outstanding, the potential impact on a company’s cash flow is minimised.
Launched by Euler Hermes in the UK and Ireland after extensive market research and a successful roll-out of a similar product in Belgium and The Netherlands, Simplicity is the first product of its kind to specifically address the needs of small businesses by removing the need for credit limits.
Businesses are covered in the event of non-payment or insolvency of their customer for a minimum of 60 percent of the unpaid debt value to an agreed maximum limit* as standard. This can be increased to 90 percent with a higher maximum if the policyholder applies for a Euler Hermes ‘grade’, (via Euler Hermes’ online platform) and their customer is assessed as an acceptable risk.
“Traditionally credit insurers have focused mainly on developing products to meet the needs of medium and larger sized enterprises,” says Lukas Neckermann, Commercial Director of Euler Hermes. “It was time to create solutions specifically tailored to the small business sector.
“Small businesses recognise the benefit of protecting their business against the risk of not getting paid, but existing credit insurance policies have been seen as being too costly, confusing and impractical for a business with little by way of credit management support. With Simplicity Euler Hermes has created an ‘out of the box’ product that requires no more administration than a motor or home contents policy, but that provides a level of protection that will help business owners sleep more comfortably at night.”