Even before COVID-19, bad debts were the cause of one in three corporate insolvencies in Germany, and the proportion of companies that were only paid by their customers with payment delays beyond the agreed payment deadline was 85%. "Nevertheless, it is still currently about 85-90% of the companies that do not hedge their receivables to be settled on payment terms. And this, although they become thereby directly the lender of their customers and carry the complete default risk", says co-founder Karsten Bahns.

After years of economic growth with low insolvency figures, however, the current developments surrounding COVID-19 have noticeably heightened the risk awareness of companies with regard to their debtor and receivables management. Companies that have not previously had credit insurance are now increasingly looking for flexible, individual solutions to protect themselves against bad debt losses. Companies that already have credit insurance, on the other hand, often also need quick and simple supplements for insurance coverage that has been declined or cancelled by their primary insurer, or that has not been sufficiently underwritten. In the existing credit insurance market, such solutions are very inadequate and cannot even be found in digital form. The credit insurance industry predominantly offers framework contracts, with which the entire turnover of a company is to be insured. This discourages many companies, as it is perceived as poorly suited to their needs, costly and complicated. Most companies are looking for selective solutions. This offers crebita.

crebita takes a new approach and is the first digital credit insurance solution for companies based in Germany to secure receivables against individual customers in Germany and abroad with real-time decisions and instant policy documentation. "We want to give companies, but especially SMEs, a way to make their own risks more predictable and to reduce potentially existential threats to them in a simple way."says co-founder Dominik Menn.

The challenge was to simplify and reduce the process of taking out a thoroughly complex credit insurance policy in such a way that it can be completed online in just a few minutes and with just a few details about the risk at any time from anywhere. "Simplicity and speed were the trump cards".reports co-founder Karsten Bahns. With crebita the affiliated companies now have the option, after identifying their customer to be insured online, of configuring their insurance cover themselves in line with their needs according to term, deductible and thus with regard to the premium. And all this with state-of-the-art contract terms and flexible cancellation options. The contract is also concluded online and the insurance policy with immediate coverage for future deliveries and services is available seconds later in the crebita account as a pdf file. In addition, the hedge can not only secure the company's own liquidity through the possible compensation payment, but can also be used to obtain new liquidity by assigning the compensation payment, e.g. to a factor.

crebita now has 500+ registered companies, many of which use the two products crebita.select and crebita.plus regularly to supplement your accounts receivable management. Customers are smaller SMEs as well as companies with billions in sales. crebita has established itself as a complementary solution in the credit insurance market and to date has placed close to €100 million in insurance volume on the market. "This is really fun" or "I never thought credit insurance could be so simple and flexible" are examples of customer reactions.

The founders of crebita are proven credit insurance and factoring experts and have a total of almost 100 years of personal market experience in this segment. These have already been used for many cooperations with brokers, associations, banks, etc. In addition, crebita relies on online marketing to further increase its reach and awareness. Risk carrier for the crebita products is the R+V Allgemeine Versicherung AG, part of R+V Versicherung AG from Wiesbaden, a strong and reliable partner.

Managing director, co-founder and idea provider of the crebita are Karsten Bahns and Dominik Menn. After years of experience in the credit insurance industry at Euler Hermes, Atradius, R+V and the specialist broker CFG Finance, in 2018 they founded the crebita which has been active on the market since the beginning of 2019.