Protect your account receivables

Accounts receivables are typically a large and liquid asset on a company's balance sheet; a company can have as much as 30% of their total assets wrapped up in the receivables. Fixed assets like buildings and machinery are usually protected from loss by specific insurance coverage. However, accounts receivable are often protected only by internal credit management practices.

Most companies extend credit terms to their customers, so that payment can be made after their products have been shipped or services delivered. A credit insurance policy protects an insured company against unexpected or catastrophic losses due to its customer’s insolvency and/or political risks which results in non-payment.

Increase your sales; ensure your business will be around tomorrow

Credit insurance isn't just about protection. It's about possibilities. A credit insurance policy covers your domestic and/or export accounts receivable against bad debt, allowing you to give more credit to more customers. More credit means more sales.

It benefits your company by giving you the strength to expand your business into new and unfamiliar markets and client’s without increasing risk; and it gives you the power to generate more sales by enabling you to extend to clients a larger line of credit from what you would normally offer.

Get more from your financial institution

Credit insurance may assist your company in obtaining a larger line of credit and better terms from your financial institution; you can potentially borrow more, increase your credit margin and working capital, or secure better financing terms. And if you are selling international, credit insurance allows you to avoid the hassle of obtaining letters of credit.

• Use your time to do more sales rather then looking after client’s financial strength and fluctuations.

Credit insurance helps you make credit decisions quickly and confidently

Commercial credit reports and company ratings can save you time and effort when faced with critical business decisions. Insurers draw on the expertise of local intelligence providers who are familiar with activity in their individual regions. As a result, you receive the same high quality information on target companies, whether they are around the corner or around the world. You'll stay current, improve your decision-making processes and protect your business interests.

Insurer’s specialists can work closely with you to supply in-depth credit analysis and ongoing account monitoring to provide early warning of potential credit risks - before they become a loss, Insurers offer you their expertise in managing buyer solvency, and evaluate the financial position of buyers in order to help you base your business development on reputable customers.

Some insurers will give you a competitive edge, where you can have instant, secure access to your credit insurance policy and client approval through the Internet. This enables you to get quick, online coverage decisions that can help you grant credit and close a sale fast.

You may benefit from the knowledge of insurance experts in very competitive industries such as lumber, steel, textile, garment, food and high technologies industries.

Factoring

Some Insurers may even do factoring, which is, they will pay you in advance of client’s due date, so you have liquid to go on in the mean time, this is also an ideal tool when a company is looking to outsource the receivable department and use existing resources to grow sales.


Delsan Group is there to service your companies growing needs in credit insurance and management.

For more information, contact the Delsan Group.