Credit risk insurance is rapidly becoming a preferred financial tool for companies facing a wide range of problems and opportunities. Your receivables are one of you most at-risk assets. Credit insurance protects against potential bad debt losses, thus providing a safety net.
Credit insurance allows you to grow your business without worry. Whether you are trying to expand credit lines with existing customers, or extend competitive open credit terms to new accounts, using credit insurance to reduce or eliminate the risk is a great way to safely grow your business.
Why you need accounts receivable:
Accounts receivable are your company's main source of cash flow, and often represent the largest unprotected asset on the balance sheet. The unanticipated bankruptcy of a major customer or the effect of a series of smaller defaults can erode cash flow and damage in the bottom line.
With credit insurance, you can protect your accounts receivable against non-payment caused by insolvency, protracted default or political risk. It allows you to expand sales while successfully managing the impact of unanticipated events of non-payment.
Who can benefit from credit insurance?
A broad range of businesses can benefit from credit insurance, including manufacturers, processors, distributors of goods, or service companies that sell on credit terms.