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