What’s the story: Any sale carries risk. There is always a chance your buyer will not pay. And non-payment can be damaging, or even catastrophic, to a seller. Companies that have been burned with bad debt may become more conservative with their sales approach which can limit growth.
While some companies may self-insure, consider factoring their receivables or use letters of credit, there are better ways to protect your receivables.

Why it matters: With default, companies risk cash flow challenges which has a trickle effect on the business. Leveraging trade credit insurance can be a multi-purpose business tool that not only protects your bottom line but can help with growth opportunities as well.

Trade credit insurance offers both tactical and strategic benefits, including:

• Get better lines of credit when receivables are protected
• Ability to assess a new customer’s viability and financial stability
• Opportunity to match a competitor’s credit limit and pay terms
• Avoid lengthy processes of obtaining letters of credit
• Protection for your balance sheet

Learn how trade credit insurance and other solutions can reduce your business risk.