http://www.trade-credit-insurance.com Accounts Receivable Risk Management Solution for Businesses Sat, 16 Aug 2008 23:25:53 +0000 http://backend.userland.com/rss092 en Single-buyer trade credit insurance will cover one specific transaction or service to a particular customer. The policy will typically provide coverage for one year. There are three different categories of single-buyer trade credit insurance: • Short-term. This will cover repayment terms of a duration of less than ... http://www.trade-credit-insurance.com/single-debtor-buyer/trade-credit-insurance-single-debtor-buyer/ Q: How do I know if trade credit insurance makes sense for my business? A: It's often best to speak with a trade credit insurance professional who can evaluate your business situation and make a recommendation based on specialized knowledge of the product. Your business may be suitable for trade ... http://www.trade-credit-insurance.com/trade-credit-insurance-frequently-asked-questions/trade-credit-insurance-frequently-asked-questions/ Every trade credit insurance policy has exclusions describing what it will and will not pay. Although this post will not attempt to identify them all, it will identify a few of the more common exclusions found in most policies. Some typical exclusions include: Trade Disputes. Quality, fulfillment, and performance disagreements between ... http://www.trade-credit-insurance.com//trade-credit-insurance-common-exclusions/trade-credit-insurance-exclusions/ There are many significant advantages of trade credit insurance. Some major benefits include cash flow protection, opportunities for sales expansion, enhanced financing availability, asset securitization, and direct access to expert credit information on businesses worldwide. While trade credit insurance is an extremely valuable tool for businesses selling on open terms, ... http://www.trade-credit-insurance.com//trade-credit-insurance-common-misconceptions/trade-credit-insurance-common-misconceptions/ Generally speaking there are three types of trade credit insurance policies on the market today: Domestic, Export, & Global or Multi-National. Domestic policies cover customer insolvency (Chapter 7 & 13) and protracted default (slow or non-payment losses). They typically cover entire customer portfolios but sometimes include only the largest customer exposures ... http://www.trade-credit-insurance.com//trade-credit-insurance-policy-types/trade-credit-insurance-policy-types/ A properly structured trade credit insurance program offers many benefits to policyholders. In addition to having catastrophic loss protection on accounts receivable caused by customer bankruptcy, slow, or non-payment default, and having immediate access to investment capital from lenders at very attractive advance rates, many company executives also use trade ... http://www.trade-credit-insurance.com//trade-credit-insurance-sales-expansion-opportunities/sales-expansion-opportunities-trade-credit-insurance/ Oftentimes, when credit and financial executives enter into discussions about trade credit insurance, a general assumption is made that customers with long time, positive trading histories will never default. Here are some typical responses from executives regarding the subject: "I'm not worried about our major accounts, we've been doing business ... http://www.trade-credit-insurance.com//trade-credit-insurance-trade-risk-protection/business-trading-relationships-are-they-safe/ Companies use trade credit insurance to improve their relationship with their lenders. Domestic and export receivables insured with trade credit insurance can be used as collateral for a loan providing excellent security and comfort to commercial lenders. Typically, banks exclude accounts receivable in the borrowing base that are concentrated ... http://www.trade-credit-insurance.com//trade-credit-insurance-improved-financing-terms/improved-financing-terms-trade-credit-insurance/ Companies that sell overseas are charged with the task of obtaining accurate and verifiable information on the buyers they do business with. Information flow from other countries tends to be a challenge for many sellers, and to remedy this problem, many businesses prefer to enter into overseas transactions using Letters ... http://www.trade-credit-insurance.com//trade-credit-insurance-letters-of-credit/international-trade-letters-of-credit/ Today, many companies trade with a few large customers exposing themselves to significant financial risks. A business is considered to be highly concentrated, for example, when approximately 80% of a company's sales is generated by 20% of the total customer base. In other highly concentrated situations, one buyer might make ... http://www.trade-credit-insurance.com//trade-credit-insurance-the-8020-rule/reducing-high-concentration-risk-the-8020-rule/