LIKELY TO SUFFER A MAJOR BAD
DEBT THAN IT IS TO BURN DOWN
Not being able to collect on just one large receivable can jeopardize the cash flow that is critical to the survival of your business. Business owners routinely insure their buildings, inventory, equipment and vehicles against catastrophic loss. Yet they often overlook protection for an asset that is just as crucial to their business: their ACCOUNTS RECEIVABLE.
You can protect your company from such a loss through credit insurance.
The Advantages of Having Credit Insurance
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1. |
Better loan terms. Lenders recognize that credit insurance significantly reduces their risk. If your key customers become insolvent, that could jeopardize the repayment of your loan. Having credit insurance against such a loss may mean your lender will grant you more favorable terms. |
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2. |
Increased sales. You can have more confidence to sell more goods, because you can liberalize your credit policies, enabling you to extend more credit to more customers. |
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3. |
Direct payment to your lender. You can make your lender the loss payee on a credit insurance policy. |
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4. |
Credit evaluations. The insurance company does its own credit evaluation on each account submitted for coverage as part of their underwriting process. |
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5. |
Have it your way. Your business can submit key accounts or its entire portfolio, as desired. |
NEW YORK CREDIT can recommend and provide credit insurance, as necessary.
Remember: Credit insurance limits your risk, but does not improve cash flow. Therefore, you do not purchase credit insurance with the intention of replacing your credit department. Good, sound business decisions still need to be made.
| Accounts Receivable Management | Credit Insurance | Trade Debt Restructuring | Reconciliations / Chargeback Management | Business And Cash Flow Plans | Financing | Turnaround Management |
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