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Unpaid receivables risk calculator

Work out how much money you permanently have „out there“ with your customers, what the loss of the largest of them would mean for you, and how much extra you would have to sell in order to make that loss back.

Only invoiced trade, not prepayments or cash sales.

24 mil. Kč

How many days you typically wait to get paid.

60 days

What percentage of turnover your biggest customer represents.

30 %

What's left from turnover. Used to work out how much more you'd need to sell.

8 %
Outstanding with customers at any time3.9 mil. KčThis much is invoiced and unpaid at any given moment.
At risk with your largest customer1.2 mil. KčIf they stopped paying, this is the cash you'd be missing.
You'd have to sell this much more14.8 mil. KčTo recover the loss from their unpaid invoices at your margin.
Insurance would cover 90 %1.1 mil. KčAt a typical payout of 90 % of the receivable; the rest is your excess.

An indicative calculation from averages, not your actual portfolio. Final terms and price are set by the insurer individually.

Want to know what cover would cost you?

The premium depends on turnover and customer mix, so no calculator can price it. We'll review your portfolio and compare insurers' offers.

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How much money do I have at risk with my customers?

The amount of money permanently tied up with your customers is your annual invoiced turnover divided by 365 and multiplied by your average payment terms. With a turnover of 24 million and payment terms of 60 days you therefore have roughly 3.9 million Kč outstanding at any given moment. If your largest customer accounts for a third of your turnover, more than 1.3 million of that sits with that one company — and its payment difficulties feed straight through into your cash flow. That is exactly the hole closed by receivables insurance, which usually pays out most of an unpaid invoice.

An unpaid invoice does not hurt only through the lost profit — it is a cash shortfall you have to cover out of your own funds. The calculator shows your real exposure and the least comfortable number of all: how much extra you have to sell in order to make up for a single unpaid invoice. The calculation runs on your side; we send nothing anywhere.

  1. 1Enter the annual turnover you invoice on payment terms (not your cash sales).
  2. 2Set your average payment terms and the share of your largest customer.
  3. 3You will see your ongoing exposure, the impact of a default and how much of it insurance covers.
You see the real number

Most companies know their turnover, but not how much money is sitting with their customers at any given moment.

The loss is more than the invoice

On a thin margin you have to sell several times the unpaid amount just to get back to zero.

A basis for the decision

You will see whether receivables insurance is relevant for you, or whether your exposure is negligible.

Frequently asked questions

How is receivables exposure calculated?
Divide your annual invoiced turnover by 365 days and multiply it by your average payment terms. The result tells you how much money is permanently sitting with your customers — that is, how much is at risk at any given moment.
Why do I have to sell more than the unpaid invoice?
Because you lose the entire amount, but on new business you earn only the margin. On a margin of 8 % and a loss of 500,000 Kč you have to sell goods worth 6.25 million just to get back to zero.
How much of an unpaid invoice does insurance cover?
Usually most of it — under receivables insurance the payout tends to be in the region of 80 to 95 % of the receivable, with the company bearing the rest as an excess. The exact share depends on the contract and the insurer.
How much does receivables insurance cost?
The premium is derived from the insured turnover and tends to be in the region of tenths of a per cent of it. The price is always individual — the insurer assesses the industry, the composition of your customer base, the payment terms and your claims history. That is why you will not find an online price calculator for it.
Is insurance worth it for a small company too?
What decides is concentration rather than size. A company with ten customers where one accounts for half the turnover is more vulnerable than a company with a hundred small customers and the same turnover.
What if the customer is merely paying late?
Receivables insurance covers non-payment, not delay. With long-running arrears, collection is usually part of the contract — the insurer takes the receivable in hand before it pays it out.
Do you store the values I enter?
No. The calculation runs directly in your browser and we send the figures nowhere. They reach a form only if you ask for a consultation yourself.
2005on the market since 2005
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