Why Do You Need Accounts Receivables Insurance?

You need to offer competitive payment terms to your customers. What happens if they go out of business, file for bankruptcy, run short on cash or don’t pay your invoices for some other reason? Accounts receivable services and insurance protects against defaults resulting from customers insolvencies, business closure, ownership changes, cashflow problems, balance sheet issues, bad faith, fluctuating demand, natural disasters, general economic conditions, and other nonpayment risks. Receivables insurance does more than mitigate risks. It is a sales tool that can help you win more orders and its a financing tool that makes your company’s receivables more attractive to lenders.

One Policy Covers Multiple Customers

All of your company’s insurable sales can be covered under one policy. A specific credit limit will be assigned for each of your customers or if you qualify for a discretionary limit, your policy will insure the credit decisions you make yourself based on your own experience. You can apply for a policy that only covers your biggest customers. You can be more selective as long as the sales you want to cover represent a reasonable amount of risk. Policies covering a single customer are less common but may be feasible in some cases for a very creditworthy debtor. If you want to cover your company’s international receivables Intercontinental Growth offers export credit insurance as well. You can insure both domestic and export sales under one global policy. Protecting your profits has never been easier with our services.