Have you ever wakened in the middle of the night worrying about an existing outstanding receivable? The customer might say they are going to pay but have yet to make good on their promise. Might you be second guessing that second load of fuel you sold them when they haven’t paid for their first? Has your customer’s open balance gotten so high that it could now truly hurt your cashflow if they don’t pay?
Many companies experience this sleeplessness when they don’t have to. They don’t think twice when insuring their trucks, buildings, equipment, etc; but A/R (which can make up to 40% of assets) is most commonly uninsured. You’re more likely to file a claim on your A/R than the fire insurance of your building. For a fraction of a penny per gallon, it makes too much sense to not explore how credit insurance can help your company.
Credit insurance is a cost-effective sales tool that allows you to insure your receivables so you can safely sell more to your existing customers, go after new customers that may have been a credit risk in the past, and expand into new markets that you originally perceived to be too risky. Credit insurance offers solutions for safe and profitable growth:
- Grow sales safely, domestically and abroad, to new and existing customers
- Protect your business from risk of non-payments
- Make better and faster credit decisions
- Ease tensions between sales and credit
- Avoid personal guarantees
- Borrow better from the bank by eliminating concentrations, and obtain higher advances with lower rates
- Eliminate letters of credit and replace them with a tax-deductible insurance provision
- Obtain leverage to collect from your customers
Contact us to see how credit insurance can help grow your business while protecting you from losses. If you are already using credit insurance, we can help you see how your policy stacks up to the rest of the market. There could be some ways we could work with your carrier to reduce your premium or enhance the policy. Better yet, there is no fee to work with us. We work with all credit insurers and allow for the best rates and maximum coverage.
Insure your receivables and get some sleep…finally.