Insure Your A/R

While credit insurance has been offered for more than a hundred years, seldom has the need for it been greater than it is today, due to the overwhelming prevalence of Chapter-7 and 11 bankruptcy filings, leveraged buy outs, delinquencies and disputes.

For the manufacturer, wholesaler, importer, exporter, and service provider, credit insurance can be a sophisticated financial tool that provides protection against losses due to insolvencies, delinquencies or both. Savvy businesses use credit insurance to protect assets, to obtain credit information and guidance, to enhance the value of their collateral with lenders, and to accelerate their business growth.

Credit insurance from a major carrier may be the single most important coverage missing from a business’s insurance portfolio. The presence of such coverage immediately makes a company more attractive not only to Porter Capital, but to most other lenders as well.

Several types of credit insurance include:

Insuring domestic or foreign receivables. This essential coverage insures that if your customers don’t pay, for whatever reason, you are protected.
Letters of Credit Insurance. This coverage is important when you as the seller cannot obtain local bank confirmation of your overseas buyer’s Letter of Credit.
Political-risk policies provide protection of assets located overseas. This type of policy is available to companies with an overseas manufacturing facility or purchased goods are still overseas.
Inventory protection endorsements are available with most credit insurance policies and permit the filing of claims against your insolvent customers in those situations where you make or import goods of a custom nature.

Porter Capital can provide our clients with expert advice about accounts receivable credit insurance and the best options to meet their needs.

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This Guide includes information on business financing options and how to decide which is best for your business.