Customer non-payment insurance.

Trade credit insurance covers domestic and export sales against customer non-payment. Premium typically 0.2-0.5% of insured turnover. Coverage: 80-90% of invoice value (10-20% deductible to maintain seller incentive to manage credit). Supplements credit checking with risk transfer.

10M annual credit sales × 0.3% premium = 30,000 annual cost. Maximum claimable per claim: 90% × 10M = 9M total cap. Deductible: 10% means seller bears first 1M of cumulative losses. Effectively eliminates concentration risk if one large customer fails.

Trade credit insurance value increases with: customer concentration (top 5 customers = 50%+ of revenue), export exposure (foreign customers harder to collect from), thin profit margins (single bad debt could wipe out months of profit), bank requirements (lenders often require TCI on receivables-backed lending). Below ~2M turnover, TCI rarely cost-effective.

A worked example

Try the defaults: annual credit sales of 10,000,000, premium rate of 0.3%, deductible of 10%, max coverage of 90%. The tool returns 30,000.00. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.

What moves the number most

The result responds to Annual Credit Sales, Premium Rate %, Deductible %, and Max Coverage %. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

The formula behind this

Premium = credit sales × rate. Max claim = sales × coverage %. Deductible = sales × deductible %. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.

What to do with a low result

A disappointing result is information, not a judgement. Pick the single input that dragged the figure down most and focus the next quarter on that one factor. Breadth-first improvement rarely works; depth-first on the worst input usually does.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.