Lenders & BANKS :
When your borrowers' receivables are protected by trade credit insurance, you can lend more against their accounts receivable portfolio, without increasing the bank's credit risk.
With Trade Credit Insurance, your clients can:
- Avoid catastrophic bad debt losses
- Reduce bad debt reserves
- Expand sales to new and existing customers with less risk
- Enhance balance sheet strength to improve lender relationship
- Improve credit department efficiencies and results
By having your client insure his AR you may:
- Become the beneficiary on clients' policies in case of bad debt losses on receivables
- Increase eligible borrowing base by including international receivables, aged receivables or concentrations
- Strengthen clients' financial position by insuring cash flow and balance sheet stability
- Establish a deeper relationship with your clients through consultative positioning
- Justify better advance rates and less restrictive covenants with credit underwriters
Who are the best candidates for trade credit insurance?
Any companies with B2B credit sales over $1 million. Manufacturers, wholesalers, distributors and service providers that are growing, exporting, in need of working capital or have concentration risks may be good prospects for trade credit insurance.
Top industries include:
- Automotive Suppliers
- Business Services
- Chemicals
- Commodities
- Electronics/Technology/Computers
- Food
- Lumber & Building Materials
- Machinery & Equipment
- Medical Supplies
- Metals
- Paper & Packaging
- Supply Houses
- Transportation
- Toys