In the last 10 years (1999 - 2009) HBOR insured export transactions of Croatian companies in the total amount exceeding HRK 8.5 billion, and paid more than HRK 16 million of indemnities. The insurance covered exports in more than 50 countries in the world, including export projects in the markets of the Philippines, Iran, Belorussia, Indonesia and India.
Did you know that an Insurance policy can be used as security instrument for the loan out of which you will finance an export transaction?
Did you know that in the Western European countries (17 countries) in 2009 there were 185,111 bankruptcies altogether, an increase of 23% as compared to 2008?
In Italy, which is also the main foreign trade partner of Croatia, an increase in number of bankruptcies of 40% was recorded. Consequently, the total number of companies in the bankruptcy procedure in 2009 exceeded 9000. In Germany, there are 34,600 companies undergoing bankruptcy procedure, an increase by 16 % as compared to 2009.
As for the Eastern European (the Baltic states, Hungary, Poland, Slovakia, the Czech Republic, Slovenia and Romania), the number of bankruptcies increased by 44% compared with the total number of bankruptcies – 55,000.
Non-payments due to illiquidity increased in almost all branches of industry, with the construction industry, metal industry and trade sector having the largest number of bankruptcies.
In the last months of 2009, some of the leading economies started to exit the recession. However, the majority of countries are expected to have a slow recovery in the years to come.
Insurance of receivables is expensive, but non-payment by the buyer is even more expensive!
Influence of unpaid receivables on the company’s operations:
|Amount of unpaid receivables in EUR
Operation with a profit margin of
* The company operating with a profit margin of 5% has to increase its turnover by € 300,000 for the coverage of a relatively small unpaid receivable of € 15,000.