Accounts Receivable Insurance

If your business offers clients credit (i.e. you give them a product or service now under the condition that they will pay later), then chances are, you will need Accounts Receivable Insurance. Accounts Receivable Insurance, otherwise known has trade credit insurance, protects your business in case a client fails to pay any trade credits that your business has sold them. Whether one of your clients goes bankrupt or just simply fails to pay back debt, Encharter Insurance has got you covered with our specialty Accounts Receivable Insurance.

If your business extends any trade credit to clients, then this insurance product is for your company. There is a timeline agreed upon between you and a client when it comes to paying back trade credit. If a client fails to pay their debt within the agreed terms of sale, then Accounts Receivable Insurance will cover you. No matter your terms of sale, we can protect one of your largest assets: your accounts receivable.

Typically, businesses that earn $1 million in annual export sales and $2 million in domestic sales, or any combination of the two, are eligible for this type of coverage. With Accounts Receivable Insurance, you will have the capacity to borrow more from your banks, as you have protection against default in case your clients do not pay their trade credits. This type of insurance line will not only increase your advanced rate on borrowing against your receivables, but it will also enhance your credit management department. Accounts Receivable Insurance lines act as a credit manager for your company, keeping track of changes in pay history, financial conditions, etc.

We understand that this type of insurance can get confusing. To learn more and for more information on Accounts Receivable Insurance, please contact Encharter Insurance right away! Don’t waste any time, contact us today for a free quote.