Recently I had a conversation with a mason friend of mine, and he told me he'd like to increase his business but was concerned about the additional risk involved. After asking him a few questions and crunching the numbers I tackled his fear with cold, hard facts. If I may, I'll use him as a case study as to how Credit Insurance can work for his company, and for your business too. Here are his numbers:
- Annual Revenue: $20,000,000.00
- Desired 5% Revenue Increase: $1,000,000.00
- Average Gross Margin: 20%
- Gross Profit: $200,000.00
- Credit Insurance Premium:
- Profit After Premium: $150,000.00
• Increase his revenues, giving him open access to new clients
• Indemnify the largest asset on his balance sheet
• Enhance his borrowing ability with his bank, or secure better terms on his line(s) of credit
• Strengthen his company's internal credit management process since he has the financial powerhouse of the insurance company behind him
• Give him, as the owner of the company, peace of mind knowing that his liquid assets are protected
By sharing this Case Study with you I hope I've demonstrated the value that Credit Insurance can bring to your business.
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