38,773 BUSINESSES BECAME INSOLVENT, LEAVING CREDITORS UNPAID
of a company’s assets are uninsured, unpaid invoices.
of US-based exporters reported some concern about getting paid by a foreign buyer
Although most companies’ largest assets are their accounts receivable, few bother to protect themselves against the risk of customer default or insolvency. Yet for many companies, if just one major customer was to default or go bankrupt, it could spell their own doom. The risk of a serious or even ruinous default by a customer is more likely than theft, fire or flood.
Despite this very real peril, only about 1 in 10 American companies buys credit insurance, compared with more than 50 percent of European companies.
For American Businesses, the benefits of credit insurance are impressive.
Improves a company's finacial profile
- Lenders are more likely to extend credit
- Gives companies a competitive advantage
A financial tool to improve their own credit profile
- Banks are willing to offer much better terms
- Some banks require credit insurance as a condition of lending
Allows for foreign expansion & exports
- Protection against a wide range of international trade hazards, non-payment & customer insolvency
- Credit terms are a very important part of the sales process for foreign buyers
Credit insurers offer knowledge to steer your business
- Help you decide to whom you should and should not extend credit. Some can even assume responsibility for collections.
- Economic intelligence, forecasting & risk analysis are available