Cost Benefit Calculator v2.0

Most clients recapture the cost of the Business Credit Insurance by utilizing the benefits available through additional sales and borrowing enhancements.

Cost Benefit Calculator v2.0

Use the handy calculator below to determine the tangible financial benefit your company can realize from a properly structured credit insurance program. More than just “passive” insurance coverage, credit insurance is a financial tool that can help you achieve several important business objectives.

Simply enter your information in the 6 fields below, click on the “Calculate” button for the results. You may try as many different scenarios as you like and note that no information is collected or stored by us or anyone else.

Do not use the dollar sign ($) or percent sign (%) in your entries.

1. Company Information
a. Average Accounts Receivable Outstanding	$
b. Average Number of Buyers Carrying Exposure at any Given Time
c. Projected Annual Sales	$
d. Gross Profit Margin (%)	%
e. Current Advance Rate (%)	%
f. Excluded Receivables (age, foreign, concentration)	$
Do not enter data in the fields below. Business credit insurance analysis results will be calculated when you click the "Calculate" button above.
g. Number of Times You Turn Accounts Per Year
h. Average Days Sales Outstanding	$
i. Average Buyer Exposure	$
2. Safe Sales Expansion Analysis Results:
a. Estimated Cost of Credit Insurance Program	$
b. Divided By the Company's Gross Margin (%)
c. Incremental Annual Revenue Required to Recapture Cost of Credit Insurance	$
d. Divided By How Many Times the Company Turns its Accounts per Year	%
e. Incremental Sales Per Turn Required to Recapture Cost of Credit Insurance	$
Summary: If your company generates additional sales equal to line 2c above, the cost of the credit risk insurance program will be recaptured. Any additional sales generated will drop directly to your company's bottom line! The protection would be provided at a true net zero ($0) cost to your company.
3. Borrowing Enhancement:
a. Advance allowable for Accounts Receivable under Current Formula	$
b. Potential allowable for Accounts Receivable under New Advance Rate with a Credit Insurance Program in Place	$
c. Potential Additional Capital that would be made available with a Credit Insurance Program in Place	$
d. If your company could put this additional capital back into its business, it would provide additional margin of (per account turn)	$
e. Or on an Annual Basis, it would provide additional margin opportunity of	$
f. This would Represent a Return on Premium Dollars Invested of	%
Summary: Credit insurance can help you maximize working capital availability from your existing receivables by allowing for increased advance rates, longer eligibility windows, and inclusion of export sales and high concentrations. The policy allows you to access more working capital from the same pool of receivables at a cost that is easily recaptured many times over with the very first increased advance.
4. Loss Protection:
a. Your Company's Average Accounts Receivable Exposure is	$
b. If you Took Losses on Two Average Exposures In a Given Year	$
c. Additional Sales Required to Recapture the Losses	$
Summary: Most clients recapture the premium investment through safe sales expansion and/or borrowing enhancements. The major benefit of credit insurance—protecting your balance sheet and bottom line as in this final scenario—can be had at a true net zero cost.

Cost Benefit Calculator v2.0

Cost Benefit Calculator v2.0

1. Company Information

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