Advance Rates: Credit insurance puts a "hard" cap on potential bad debt losses, reducing your overall risk inherent in pledged accounts receivable. The reduced risk on the secured collateral may allow you to increase the advance rate and meet your client or prospects need for additional working capital.
Eligibility: Credit insurance eliminates the risk, possibly removing any "concentration" or "slow pay" issues from the borrowing formula. With these issues removed, you might be able to provide the additional working capital your client or prospect requires.
Lower Cost of Funds: With the accounts receivable collateral insured, you may be able to offer your client or prospect a lower cost of funds to help compensate for your reduced risk position.
Underwriting Support: The underwriter assumes the responsibility to review, approve, and monitor your clients insured account base. Once approved, you know your risk has been eliminated. There's no credit due diligence required by your client under the terms of the policy. Their only responsibility is to notify the underwriter when an account becomes severely delinquent.
Export Sales: We can insure export sales that provides many benefits to your client, as follows:
Work-In-Process Coverage: Can provide protection on special "work-in-progress" orders, possibly allowing you to offer funding, or increase funding, on your clients unique capital requirements.
Policy Assignment: The policy would be assigned to the lender, giving you the same rights as the client under the terms of the policy.
High Risk Coverage: We can offer separate coverage on "high" risk accounts.