Are you protecting your largest Asset?

Trade Credit Insurance

Accounts Receivable comprises about 40% of a company’s assets, so defaulted and delayed payments can significantly harm your cash flow and hamper your ability to fund overhead and production.

What Are the Advantages and Disadvantages of Trade Credit?

To promote growth, many companies allow clients to purchase a product, now and pay later—this is known as “trade credit”.

Unfortunately, studies show that at least 1 in 10 payments are late, or worse: turn into bad debt, according to Insurance Business Magazine. In addition to the usual reasons for nonpayment—insolvency, insufficient funds, or bankruptcy—the current global pandemic is exposing all businesses to higher levels of trade risk for nonpayment.

BOOK YOUR TRADE CREDIT INSURANCE REVIEW

That’s because international factors such as economic and political stability can severely impair a client’s ability to pay an invoice. And, since Accounts Receivable comprises about 40% of a company’s assets, defaulted and delayed payments can harm your cash flow and hamper your ability to fund overhead and production.

Trade Credit Insurance can help protect your cash flow by insuring some or all of a customer’s bad debt.

Trade Credit Insurance Benefits for your Organization?

PROTECT CASH FLOW

If a client defaults on their payment, submit a Claim for an amount up to the Outstanding Credit Balance or Approved Credit Limit, subject to the Policy terms and conditions. You can also access Collection Services through your policy for any client.

MARGIN MORE TO ENHANCE YOUR FINANCIAL FLEXIBILITY

Banks normally loan amounts that represent 50-80% of your Accounts Receivable. With Trade Credit Insurance, they may up the ante to 90%.

INCREASE AND EXPAND SALES

Check a prospect’s credit before you sign them using your insurance portal. Then, offer profitable clients even more attractive payment terms.

MANAGE FOR GLOBAL VOLATILITY

Assert resilience in the face of international consumer demand, political upheaval, and economic change which can unexpectedly and rapidly affect a customer’s ability to pay invoices based on trade credit.

OUTSOURCE YOUR CREDIT MONITORING

Once you obtain Trade Credit Insurance, you can rest easy knowing your insurance company monitors your clients’ credit 24/7. If there is a concern, you’ll be the first to know!

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