What Are The Benefits
Of Credit Insurance?

Credit insurance provides not only peace of mind to you, but also the following key benefits:

Catastrophic loss protection

Your receivables are one of your largest and most at-risk assets. Credit insurance protects against potential bad debt losses, thus providing a safety net. Click here to see an actual case study from our client portfolio.

Safe sales expansion

Credit insurance allows you to grow your business without worry. Whether you are trying to expand credit lines with existing customers, or extend competitive open credit terms to new accounts, using credit insurance to reduce or eliminate the risk is a great way to safely grow your business. Click here to see an actual case study from our client portfolio.

Increased Borrowing

Credit insurance can provide cost effective access to working capital that can help you grow and avoid cash flow crunches. Your credit insurance policy can help you maximize working capital availability from the receivables you pledge to your lender. Most ineligible receivables (including concentration of receivables with a few accounts and foreign receivables) can now be included in your borrowing base with your lender. Click here to see an actual case study from our client portfolio.

Credit Decision support & information on your customers

When you implement a credit insurance program with Global Commercial Credit, you are not just buying coverage on your receivables, you are getting a partner in credit risk management whose goal is to help you avoid credit losses before they happen and back you up when they do. Credit insurance can also provide you with valuable market intelligence on the financial viability of your customers (buyers), and, in the case of buyers in foreign countries, on any trading risks peculiar to those countries. Click here to see an actual case study from our client portfolio.

Allows companies to lower their bad debt reserve

Credit insurance will allow you to lower your bad debt reserve significantly and manage write-offs with greater certainty. By reducing the bad debt reserve on this scale, you will be able to take excess bad debt reserves back into income (by provisioning significantly less) thus improving earnings, shareholder equity and financial ratios etc. Credit Insurance premiums are tax deductible (whereas your bad debt reserve is not).

Helps avoid an unexpected significant impact on your company

For example, you would have to generate a significant amount of future sales at $0 profit (beyond your normal sales) to make up for a credit loss.

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