Do You Need Trade-Credit Insurance?
If you fit into one of these categories, you should consider
Growing Businesses: Most small businesses operate on credit as they need cash to fund inventory and receivables. A Trade-Credit policy can allow you to borrow at more favorable terms from banks.
High Customer Concentration: If too much revenue stems from a single or small pool of customers, your growth relies on their ability to meet payments. A Trade-Credit policy provides a financial backbone so that you don’t fail alongside your customer.
Diversification of Customer Portfolio: If a business is adding customers, it’s important to know that they’re credit worthy. A Trade-Credit policy provides B2B credit risk analysis before signing on the dotted line.
Contractors: This often appeals to contractors who bring in more than $10-million in revenue, but services can’t be retracted once complete. A Trade-Credit policy can help you walk away from an unhealthy client after you’ve invested valuable time, money, and installed materials.
Mergers & Acquisitions: Before acquiring another business, you should always understand the Accounts Receivable you will inherit. If certain receivables aren’t insurable, this is a good reason to negotiate a lower price for those assets.
Need strategic protection for your upcoming Merger & Acquisition?