How to create a winning business case for credit insurance

Credit insurance is a highly effective risk management tool that can protect businesses from losses due to customer insolvency or non-payment. A well-prepared business case is crucial to securing funding and resources for implementing credit insurance. 

This template can help you create a winning case for credit insurance within your business. By working through this document, you'll create a comprehensive framework that covers all aspects of a business case, including the strategic, economic, commercial, financial, and management cases. 

You should customise this template based on your company's specific needs and goals. Think of it as a starting point to create a compelling document that will assist stakeholders in understanding the benefits of credit insurance. 

1. Executive Summary

Include an executive summary that offers an overview of the business case, highlighting its purpose, key findings, recommendations, and expected outcomes. It is designed to give readers a high-level view of the business case and encourage them to read on. It should include details on the following: 

• A brief overview of the business case and its purpose  
• A brief overview of credit insurance  
• Expected outcomes and benefits 
• Estimated cost and timeline  
  

2. Business Case

The business case section should provide a deeper dive into the proposed project's background, objectives, stakeholders, and risks. It establishes the context for the business case and outlines the goals and objectives that the project is expected to achieve.  

• Project name:  
  
  
• Project manager:  
  
  
• Background information and context: 
  
  
• Objectives and goals: 
  
  
• Stakeholder and partner organisation:
  
• Project reference: 

3. Strategic Reasoning

This section focused on strategic reasoning and examines how the proposed project aligns with the organisation's overall strategy and fits into the larger industry landscape. It considers competitor analysis, market trends, and opportunities, and helps readers understand how the proposed project will help the organisation achieve its strategic goals.  

• Overview of the current credit management approach 
  
  • Outline of what the company currently does and any risks associated with this
    

• Benefits of credit insurance and why this may be better than other approaches 
  
  • Comparison of credit insurance with self-insurance, factoring and letters of credit. Also benefits beyond the actual insurance itself including easier access to financing, less time spent on in-house credit risk assessments, and less time wasted on onboarding new customers that turn out to have a poor credit rating.  
    

• Alignment with the organisation's strategy, objectives, and priorities
  
  • How credit insurance will align with your company's specific goals and strategies 
    

• Competitor analysis 
  
  • Assess the strengths and weaknesses of your competitors with regard to credit insurance.
    

• Risks
  • The risks associated with embarking on this project. 
    

• Benefits to your organisation 
  
  • What are the potential benefits to your organisation? e.g. greater security, less risk, ability to grow.  
    
    
• Industry trends, opportunities, and market analysis 
  
  • How are other businesses using credit insurance to their advantage? What are the broader trends in your and other industries regarding this topic? 

4. Economic Analysis

An economic analysis section should focus on the financial impact of the proposed project. It should include a cost-benefit analysis, potential return on investment (ROI), net present value (NPV), and payback period. If this granular detail is unavailable for your specific use case, it should aim to help readers understand the economic value of credit insurance to the company's bottom line 

• Cost-benefit analysis   
• Return on Investment (ROI) 
  
• Net Present Value (NPV) 
  
• Break-even analysis  
  
• Payback period: 
  
  

5. Financial Details 

Depending on your circumstances, you may want to include financial details with the above, or keep it separate. Financial details should provide a more detailed look at the financial statements, funding requirements, and financial ratios associated with the proposed project. It helps readers understand the economic feasibility of the project and the potential risks related to funding it. 

• Financial statements 
  
  • Include documents such as income and cash flow statements and balance sheets 
    
• Funding sources and requirements 
  
• Financial ratios  
  
  

6. Management Reasoning

This section focuses on the practical aspects of implementing the proposed project. It includes project and implementation plans, resource allocation, and change management considerations. It helps readers understand the operational and management aspects of the project. 

• Project management plan 
• Implementation plan 
• Resource allocation and management
  
• Change management plan 

7. Conclusion 

Your conclusion should summarise the key findings and recommendations from the business case. It also highlights potential challenges and risks associated with the project and suggests the next steps for further consideration. 

• Summary of key findings and recommendations 
• Summary of why Atradius 

• • Atradius is one of the world’s leading and most trusted credit insurers  
  • It has been enabling trade for close to 100 years 
  • It has strong A and A2 ratings by financial ratings agencies 
  • It operates a partnership approach with customers, getting to know our business, customers and markets in order to deliver a high quality service for us 
    
    
• Potential challenges and risks 
  
  
• Next steps and timelines   

8. References

Add a section for references and supporting data, additional analysis, and sources that back up the information presented in the business case. It should provide readers with impartial and more detailed information that can help them make an informed decision about the proposed project. 

• Supporting data and research 
  
• Additional analysis and charts 
• References and sources