If you’ve ever wondered if an invoice is ever going to get paid….you don’t have to ask yourself “what are the benefits of credit insurance coverage?” However, credit insurance is often a worst-case scenario solution and other solutions like training and coaching your finance team to be proactive or aggressive around collecting unpaid accounts receivables, developing standardized best practices, policies and procedures, the use of a respected collections agency etc. are good steps to helping reduce steadily the impact of not to be able to collect on an invoice.
What’s Credit Insurance?
Credit insurance, otherwise called trade credit insurance, is a type of commercial business insurance that ensures you will receive the money you are owed if your customer is not able to pay. Many business owners purchase credit insurance for the reassurance it offers. It is especially important for multinational businesses or individuals with international customers, as with this type of insurance, you won’t need certainly to worry if your foreign customer is not able to pay as a result of blocked funds, political unrest, or another unforeseen circumstance.
So what are the benefits of credit insurance coverage?
The benefits of credit insurance coverage are numerous and we’ve outlined numerous them below:
One of many key great things about credit insurance coverage is that it can cover your Canadian, US and Foreign sales/accounts receivables for non-payment.
Credit insurance coverage covers large, medium and small invoices to whatever the size of your company or that of one’s customer there’s coverage suited for you
Another of the benefits of credit insurance coverage is that it can cover as much as 90% of an invoice which is unpaid.
Credit insurance coverage if for a wide range of reasons that you haven’t received payment including political, bankruptcy etc.
The ability to take back cash flow by utilizing credit insurance coverage to boost your business’s power to secure or increase financing is one of the great things about credit insurance coverage.
Credit insurance coverage can allow you to grow your company by feeling comfortable in promoting your company in new markets globally as you have the certainty of receiving payment.
ALIGNED Insurance brokers can secure credit insurance coverage from many leading providers including EDC, COFACE & Euler so you have choice
What can credit insurance do for your company?
If you’re wondering what credit insurance can do for your company, you’re in the right place.
Credit insurance can protect your company: Credit insurance might help businesses protect their balance sheets, safeguarding against from insolvencies and slow payment to political risk and blocked funds.
Credit insurance can fund your company: This business insurance solution can fund your company by securing an otherwise unprotected asset, resulting in a rise in working capital access on domestic and export A/R.
Credit insurance can grow your company: With credit insurance in your back pocket, you will feel empowered to approach foreign markets the exact same way you do local ones and offer longer payment terms, resulting in growth for the business.
Where can I purchase credit insurance?
You can buy credit insurance from a wide range of insurance companies in Canada. However, the wisest decision you can make is by purchasing credit insurance from an insurance broker. Insurance brokerages like ALIGNED Insurance make searching for credit insurance easier than ever before.
Our expert brokers can answer any questions you might have, obtain and compare quotes on your own behalf, and walk you throughout your policy options. Find comprehensive coverage at a good rate with ALIGNED. Contact us to get going or click here for a free quote.