Who’s The New Guy?
This summer I’ve been introducing my kids to some classic movies and recently watched Back to The Future. I love the seen from the Enchantment Under The Sea dance where Marty shows up and jams on the guitar. He’s the new guy in town, and many people don’t know what to think of him. It reminded me of a similar situation many fuel distributors experience.
While fuel distributors don’t necessarily jam out on guitars, they are often in situations where someone new in town shows up and wants to buy fuel from them. A lot of companies reading this know their market and the companies they sell to, but what happens if you get an order from a new customer with no credit history or unwilling to share financial data? If you turn this away, could you be leaving sold gallons on the table? If you had a guarantee that they would pay you, would you sell to them? Credit insurance is an excellent solution to solve this dilemma.
If you’re not familiar with credit insurance, it is an insurance policy that guarantees your receivables. Simply put, if you sell product to a company and they don’t pay, you file a claim and the insurer pays you. It is used as a tool to quickly do credit checks and sell product to new customers as well as give more credit to existing customers. It can even be utilized to get bigger credit limits from your suppliers. Businesses don’t think twice when insuring their trucks, buildings and equipment, but their A/R can make up to 40% of their assets and is the most commonly uninsured. You’re more likely to file a claim on your receivables than the fire insurance for 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. This is a safe solution to help you aggressively sell to new customers and increase the credit limit of your existing customers.
If you already have a policy, we can help you reduce your premiums and get coverage on hard to cover customers. Contact us today to learn more.
For more information,
contact Cory Watson