B2B Trade Credit Risk Calculator
Estimate your annual exposure to buyer defaults, payment delays, and disputes — then compare uninsured losses against the cost of trade credit insurance.
A B2B supplier with ₹50L annual revenue and 60-day credit terms faces roughly ₹2–4L in annual default losses (4–8% of turnover) without insurance. Trade credit insurance at 0.5% premium costs ~₹25,000 and recovers 85% of defaults — typically saving ₹1–3L net per year for mid-sized supplier portfolios.
Your Portfolio
Risk Analysis
| 🎲 Bare | 🛡️ Insured | |
|---|---|---|
| Default losses | ₹3.0 L | ₹45K |
| Delay costs | ₹28K | ₹28K |
| Dispute losses | ₹30K | ₹30K |
| Insurance premium | ₹0K | ₹28K |
| Total annual loss | ₹3.6 L | ₹1.3 L |
| Year | Revenue | Uninsured | Insured |
|---|---|---|---|
| Y1 | ₹50.0 L | ₹3.6 L | ₹1.3 L |
| Y2 | ₹55.0 L | ₹3.9 L | ₹1.4 L |
| Y3 | ₹60.5 L | ₹4.3 L | ₹1.6 L |
| Y4 | ₹66.6 L | ₹4.8 L | ₹1.7 L |
| Y5 | ₹73.2 L | ₹5.2 L | ₹1.9 L |
Frequently Asked Questions
How much does trade credit insurance cost in India? +
Trade credit insurance in India typically costs 0.3%–0.8% of the insured invoice value annually. ECGC policies for export credit start around 0.5%. Commercial insurers like Euler Hermes and Atradius charge 0.4%–0.9% depending on buyer risk profile and sector.
What is the average B2B default rate in India? +
The average B2B invoice default rate in India ranges from 3%–8% of receivables annually depending on sector. SME buyers have higher default rates (5–12%), while large corporates average 1–3%. MSME delayed payment (>45 days) affects over 60% of Indian suppliers.
What does trade credit insurance cover? +
Trade credit insurance covers buyer insolvency/default (typically 85–90% recovery), protracted non-payment (60–90+ days past due), and political/country risk for exports. It does not cover goods quality disputes unless add-on clauses are included.
When does trade credit insurance NOT make sense? +
Insurance may not be cost-effective if your buyers are exclusively large, investment-grade corporates with <1% historical defaults, your invoice values are very small (<₹50K each), or you have excellent credit vetting + secured payment terms (advance or LC). The break-even is when expected recoveries exceed the premium.
Become a FastFee Partner.
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