A Put Option is an effective tool to help you continue to sell to a buyer(s) representing significant credit risk concerns or deal with a concentration issue with an investment grade customer. With the risk removed from your balance sheet, you are able to continue with the relationship until the credit risk improves or it no longer represents a concentration issue allowing you to realize your original revenue projections and / or increase market-share. It can also help you maximize borrowing availability under your existing bank line.
This program involves a non-cancelable contract whereby the option seller agrees to buy qualifying accounts receivable at a pre-determined amount if your protected customer(s) goes Insolvent during the contract period. The protection would be provided by a financially strong counterparty.
GCC can coordinate a Put Option with other forms of receivables management, such as factoring or portfolio based credit insurance. One of our credit risk management specialists will provide complete support and guidance to help you develop the ideal custom tailored solution for your needs.
Protection is available for public and liquid private companies for a term of 6 months up to 5 years.
For a quote, or with any questions, contact us at 877-422-7475 or use this online form to request a quote.