QUICK GUIDE TO CREDIT INSURANCE
Why would a company buy Accounts Receivable Insurance?
· Provides protection against unexpected / catastrophic bad debt losses.
· Enables sales growth without taking on additional credit risk.
· Reduces bad-debt reserve requirements while also providing broader protection.
· Supplements in-house credit underwriting and account monitoring.
· Facilitates expansion into new markets (including international opportunities).
· Protects cash-flow and bottom-line profits.
ALSO……..improves banking (borrowing) arrangements by:
· Enhancing collateral value of A/R …..supporting competitive loan pricing and advance rates
· “Beneficiary” assignment to the bank ultimately giving the lender the same rights as their borrower.
· Putting a “hard cap” on borrower’s potential bad-debt losses.
· Transferring the risk of receivable “concentrations” and eliminating industry concerns.
· Underwriting guidance from EHACI ensures that the client is making proper assessment of credit risk.
· Reducing the overall inherent risk in pledged receivables.
Who are the best prospects for credit insurance?
· Growing companies
· Companies that are exporting
· Clients that utilize their A/R as loan collateral
· Low profit margin businesses
· Companies that have suffered catastrophic losses
· Any company that has commercial trade receivables
Some targeted industries:
Manufacturing (all types) Lumber & Wood Products
Metals (distribution / services) Building Materials
Paper & Packaging Plastics
Food Apparel
Wholesale Durables Wholesale Non-Durables
Transportation High Tech
Graphic Arts Chemicals
Energy Service providers
What do I do when I am interested?
Simply contact:
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