Introduction
Any company that sells goods or services on credit terms (i.e. extends credit to customers rather than requiring cash payment up front), is exposed to the risk of non-payment. Companies can insure their trade receivables against this nonpayment risk by purchasing Trade Credit Insurance through EIA Global. Typical policyholders have annual sales ranging from $5 million to $10 billion.
Why Companies Buy Credit Insurance?
• Protects against the risk of a customer on credit term sales
• Mitigates concentration risk when a large portion of a company’s sales are directed to a few customers
• Facilitates attractive bank financing
• Supports a company’s accounts receivable management and validates credit protocols
• Provides an insured credit limit for a customer and monitors portfolio performance during the policy period
• Increase sales to new and existing customers
• Helps to establish new foreign markets to increase export sales
• May help in reducing a company’s bad debt reserve
• Offers assistance to directors and officers by providing a second opinion on customer credit limit decisions and monitoring the customer portfolio
Contact EIA-Global today for your Trade Credit Insurance & Export Insurance needs - your cost effective way to protect against the risk of non-payment of your trade account receivables.
