What are some of the other benefits of accounts receivable insurance?
• Advance Rates: Business credit insurance puts a hard cap on potential bad debt losses. It reduces your overall risk in pledged accounts receivable, which may allow you to increase the advance rate. You can also meet your clients need for additional working capital. • Improved working capital: Improved working capital Banks typically will lend against a higher percentage of your receivables if it is insured. Bank Operating Facility, based on insured A/R: 85% of $1.45M : $ 1 230 000 Additional Financing $295 000(31%) • Offer Lower Pricing: Business credit insurance can give you the security to offer more competitive pricing. • Initial Account Support: Your underwriter monitors your clients insured account base. Once approved, youre secure in the knowledge that your risk has been eliminated. You also free up staff for other tasks. • Ongoing Account Support: Your underwriter can alert you to any changes to your clients account that can affect you. • Export Sales Support: Including insure
