What is Accounts Receivable Insurance?
Accounts Receivable Insurance, also known as Trade Credit Insurance, is protection for your accounts receivables from bankruptcy, protracted default or political events beyond your control. Not being paid at all or on time erodes margins, cripples cash flow and undermines your financial stability. Accounts Receivable Insurance is an excellent tool to protect your organization.
Why Buy Accounts Receivable Insurance?
Accounts Receivable Insurance will safeguard against unforeseen financial loss and safely enable you to:
- Grant longer credit terms
- Extend larger credit terms
- Expand domestic and international sales
- Improve bank margining to 90%
The Benefits of Accounts Receivable Insurance
- Protect against domestic and foreign bad debt
- Improve bank margining rates
- Enhance securitization potential of accounts receivable
- Expand product sales securely at home and abroad
- Curtail balance sheet impairment of foreign assets due to political or economic risks
- Maximize credit department effectiveness
- Improve tax efficiency of bad debt reserve
- Eliminate over and under reserving
*Accounts Receivable Insurance, also known as Trade Credit Insurance, should not be confused with any reference to accounts receivable insurance often shown as an extension on a business insurance policy, which refers to the direct loss or damage of account receivable records and resulting expenses.