Nationally, trade credit risk insurance can protect your business and limit your financial risk if you have unpaid accounts receivables. It also protects you and your business in case your customer goes bankrupt.
There are several benefits to having credit risk insurance. One benefit is that trade credit risk insurance can be sued as a line of credit for clients and can help your business grow. It can help you grow geographically, and you can also sell to international entities with little risk. There are many ways that you can set up your policy, and it gives you the flexibility you need. An insurance broker will be able to help you decide which policy will be the best fit for you and can go over all the details with you. If you have any questions or need clarification, be sure to bring them up in your consultation.
When deciding on the amount of coverage you need, you may want to consider what the breaking point may be for your company. For example, your deductible might be what you can afford if you have a certain bad expense amount in mind. You can even decide how you want your policy to work and have quite a bit of control over the costs of your policy. You may even be able to decide on the number of days past due that your policy can lapse. To learn more about how you can mitigate your financial risks, be sure to contact Trade Risk Group or visit their website at traderiskgroup.com.
