Your accounts receivable are a critical component of your balance sheet – they directly affect your cash flow and your profitability. Yet while you insure your company against property loss, liability and other unpredictable events, you probably leave one of your most vulnerable assets open to loss and take all of the risk on bad debt write-offs.

There is a safer way to do business!

Adding credit insurance to your company’s credit risk management practices caps your exposure to bad debt loss, giving you a measure of income security and adding confidence that financial objectives will be met.

With credit insurance in place, you should be able to significantly reduce your bad debt reserves. This can have an immediate, positive impact on your company’s earnings. Unlike non-deductible bad debt reserves, credit insurance premiums are a fully tax-deductible business expense.

Credit Insurance will enable you to extend more credit while reducing the risk of non-payment, promoting safe sales expansion both domestically and abroad. Higher net profits from increased lines to current and new accounts typically more than cover premiums.

Safely expand your export sales or begin exporting with confidence. Insuring export receivables is more convenient – and less expensive – than a letter of credit, and is far safer than selling on open account terms.

When you offer your lender insured accounts receivable as collateral, you could significantly increase your borrowing power. Credit insurance makes lenders more likely to advance a larger percentage of the receivables’ value.