Sweden’s SME exporters can now assess the credit worthiness of potential overseas business partners and protect their payments with them online in less than two minutes.
Credable, a Swedish insure-tech start-up which offers invoice insurance to SMEs, is from today providing cover in 24 European countries. The firm believes that the market for Swedish SMEs seeking financial support for overseas trade is underserved. As 59% of Sweden’s exports are within the EU* and exceeded Euros 20bn in the first quarter of 2018**, helping smaller firms protect their payments when venturing abroad both helps them and represents a huge market opportunity.
Launched in the Swedish market in March this year and growing rapidly, Credable is now taking the next step of providing cover across Europe as a direct response to growing demand and feedback from existing and potential clients.
In less than two minutes, the service allows companies to go online and check the creditworthiness of their customers for free and, based on a real-time credit rating, instantly purchase credit insurance on individual invoices. Companies can even insure invoices up to 15 days after they have been issued, giving the busy SME business owner added convenience and peace of mind.
As no other trade credit insurance company in the world is able to offer this service; Credable is revolutionising the trade credit insurance and payments market in favour of smaller firms. By helping Swedish SMEs protect their unsecured accounts receivables Credable provides reassurance to companies looking to export that their clients in distant territories are trustworthy financial partners and their payments are protected if any problems arise.
Credable Managing Director, Richard Garnier explains:
“Since our launch last March we have seen strong interest in our proposition especially from exporting SMEs and high growth companies working with new customers – two groups in particular for whom on-demand credit checks and instant invoice insurance make real sense.”
“Invoice insurance is both an alternative and a complement to traditional forms of short term financing for companies which include invoice discounting, supply chain financing and factoring. These sort of financing products are not always best suited to the SME’s needs. In fact our customers tell us that they can be costly, time consuming and difficult to manage as well as being primarily designed to cater only for domestic trade.”
The total invoice financing market worldwide in 2017 amounted to 2,472 billion euro, a growth of 4% since 2016***, which suggests companies are becoming increasingly concerned about late and non-payment of invoices. However, in Sweden alone, of the 20 billion euros of invoices financed, only 5% represent cross border trade****. This astonishing difference is likely as a result of factoring and financing companies being limited to domestic markets.
Credable is part of Euler Hermes, the world’s largest trade credit insurance company.