Do I need credit insurance?

Importance of Credit Insurance

Do I need credit insurance?

Each company’s reason for purchasing credit insurance is unique. Typically it is to satisfy a need in one of these departments in any company:  Finance; Credit and Collections; Sales and Marketing.

Ask yourself the following “Top 10” questions?

  1. Do I require more “financing” or access to capital?
  2. Would my financial institution margin against my A/R, Inventory and WIP?
  3. Am I trying to grow my business in “new markets” domestic or foreign?
  4. Would I be more comfortable with additional “credit information” on new buyers?
  5. Do I need a competitive edge over my competition?
  6. Would offering longer payment terms be an advantage?
  7. Are there significant individual buyer receivables on my balance sheet?
  8. Would insuring these significant buyers help secure these large payments?
  9. Are you uncomfortable with your accounts receivable “average days outstanding”?
  10. Would insuring your balance sheet provide comfort on outstanding A/R?

If you answered “YES” to any of the above questions, a “Credit Insurance” conversation about how a policy can help and would assist by providing a solution to your unique business situation.