Euler - CI vs. Factoring

Euler Hermes
Credit Insurance
vs. Factoring
Our Knowledge
Serving Your Success.
Credit Insurance is a more cost effective
and empowering option for your company.
When you factor you sell your receivables, giving up control of the customer
relationship. Credit Insurance simply covers the debt that is owed so that you can
sell to your customer and maintain the relationship after the invoice is sent.
While factoring seems like an “easy” way to shift credit, collections and financing responsibilities outside
of the company, it is very costly. Credit insurance becomes a more practical alternative as your company
grows. A working capital line of credit backed by credit insurance is less expensive and more flexible. In
addition, credit insurance helps facilitate borrowing and allows for alternative financing opportunities, but
does not provide loans.
Credit Insurance
Accounts Receivable
Insure AR
Sell AR
AR Protection
Once credit request is approved, conduct
business without interference
Must notify a factor for each sales transaction to
receive protection
Customer Relationship
Direct contact with buyers
Contact buyers through a factor
Cash Advance
Yes, but rate increases to about 2%*
0.25% to 0.50%*
Other Rates
If AR is not received on due date, additional rate
(.25% -.50%) can be applied
$35 or $50 per buyer per year, free on
discretionary small accounts**
$30 to $50 per buyer per year**
Other Fees
UCC filing and Administrative fees can add up to
$100 per buyer per year
Euler Hermes is North America’s largest provider of trade credit insurance. We offer domestic and export
credit insurance policies that insure against commercial and political risk in over 200 countries worldwide.
Our team of 1,500 risk experts worldwide has a unique underwriting approach which allows for quick
credit limit decisions and continuous monitoring of the creditworthiness of your customers. This enables
you to safely expand your sales to new customers in new markets while protecting one of your company’s
most valuable assets – your accounts receivable.
Euler Hermes North America Insurance Company
Michael Dodson, Senior Agent
Phone 317-805-4810 | Mobile 317-698-7162
9465 Counselors Row, Suite 210, Indianapolis, IN 46240
[email protected] |
* $3 mm to $5
mm in annual
sales transactions
for payment
** Domestic buyer