Insurance Services for Credit Risk Protection
The Credit Insurance Source provides insurance services for manufacturers, wholesalers, and service companies that sell on open credit. Credit insurance is a management tool designed to protect your largest asset—accounts receivable—from losses outside your control, including customer bankruptcy, insolvency, inability to pay, and other forms of nonpayment. As more companies sell to customers throughout the world, our export credit insurance services help businesses reduce risk while remaining competitive in the global marketplace.
Many companies are finding that selling overseas is a way to grow their business. Many foreign buyers require open credit terms. Sellers may want the protection of cash terms, but that can restrict sales to new customers and markets. Credit Insurance allows sellers to safely expand sales and transfer the credit risk to major credit insurers.
Many companies are finding that selling overseas is a way to grow their business. Many foreign buyers require open credit terms. Sellers may want the protection of cash terms, but that can restrict sales to new customers and markets. Credit Insurance allows sellers to safely expand sales and transfer the credit risk to major credit insurers.
Benefits
A credit insurance policy transfers credit risk to an insurance company, helping protect receivables from large, unexpected credit losses. Coverage can include Chapter 11 or Chapter 7 bankruptcy, inability to pay, and political loss on foreign sales.
Risk Mitigation
Our insurance services can help your business safely increase sales to existing customers and pursue new customers that may not have been previously possible. By transferring credit risk, companies may be able to offer open credit terms instead of letters of credit or other secured terms.
Safely Increase Sales
Credit insurance may help lenders increase borrowing limits, raise advance percentages on eligible receivables, or reduce interest rates. In some cases, eligible receivables may increase significantly. Expert third-party evaluation of credit risks can also strengthen credit management.
Improve Borrowing Capabilities
Who are Candidates?
Any company selling on open credit may be a candidate. Businesses may especially benefit if 80% of sales come from 20% of customers, or if they are rapidly growing, have minimal credit staff, large borrowing requirements, high-risk industries, or high credit loss experience. Sample industries include:
- Textile
- Apparel
- Plastics
- Steel
- Food
- Chemicals
- Paper
- Auto Parts
- Commodities
- Adhesives
- Computer Parts
- Electronic Parts
- Consumer Products
- Film
- Machine Parts
- Aircraft Parts
- Wire and Cable
Request Insurance Services Guidance
If your company sells on open credit, The Credit Insurance Source can help evaluate options for protecting receivables, improving credit confidence, and supporting safer growth. Contact us to discuss the right credit insurance solution for your business.