Product/Service
As Irelands largest independent Credit Insurance speclialist, Trade Credit Brokers Ltd, has access to every available credit underwriter in the market. This ensures that your company can receive the most suitable, cost effective cover, tailored to meet your individual business requirements.
Bad debts can impact on your business in many ways. They divert funds away from areas such as salaries, marketing, manufacturing and many other areas. Credit insurance provides policyholders with a predetermined premium spend which can be pre-budgeted. This allows Companies to concentrate on sales and manufacturing with the knowledge that they can call upon their credit insurance policy in the event of a bad debt.
An analysis of the level of new sales required to eliminate the impact of a bad debt can be seen as follows :
A company who suffers a €50,000 bad debt operating on a profit margin of 5% would need to increase sales by €1,000,000 in order to stand still.
This level of increase may be completely unrealistic for many businesses and most will suffer due to a debt of this size. With a Credit Insurance policy arranged by Trade Credit Brokers the impact of this bad debt can be significantly reduced.
| Bad Debt | Pre-Tax Profit %. | |||
|---|---|---|---|---|
| 5% | 8% | 10% | 12% | |
| €50 | 1,000 | 625 | 500 | 417 |
| €500 | 10,000 | 6,250 |
5,000 |
4,170 |
| €5,000 | 100,000 | 62,500 | 50,000 | 41,700 |
| €10,000 | 200,000 | 125,000 | 100,000 | 83,400 |
| €50,000 | 1,000,000 | 625,000 |
500,000 | 417,000 |
Trade Credit Brokers
Registered in the Republic of Ireland No.199439
Office: 36 Fitzwilliam Street Upper, Dublin 2, Ireland
Tel: +353 1 678 9930 | Fax: +353 1 678 9941
Email: mail@tcbrokers.com
A member of IFG Group Plc
Trade Credit Brokers Limited is Authorised and Regulated by the Financial Regulator