Every Business Needs Insurance for Accounts Receivable — Here’s Why

Most businesses sell services and goods on credit, especially in business-to-business (B2B) commerce. In many cases, companies can’t hold out on customers that buy with credit and expect them to stick around. They can easily find another business to fulfill their needs that sells on credit. With no other option, accounts receivable insurance is an essential part of these entities’ operations.

Improve Your Ability to Extend Credit

Credit extension is a major factor businesses use to select suppliers. Since credit is extended to customers so often in the commercial world of business, you need to sell goods on credit to compete. With accounts receivable insurance, you can comfortably extend more credit. This will build stronger relationships with customers and attract more customers going forward.

Help Your Buyers Grow

Most businesses are interested in growth. At scale, profit margins are higher and companies are less susceptible to failure. Businesses that you serve understand economies of scale. Unlike consumers, businesses take on debt with the sole intention of growth. With AR insurance, you can extend more credit, thereby helping your partners grow.

Get Better Financing From Banks

Your company probably partially funds operations with financing. Financial institutions account for dozens of factors when extending credit to commercial clients. If your receivables are backed with insurance, you can win over loan officers’ trust and get more financing for your business.

Contact Trade Risk Group, to learn more about our receivable insurance plans.

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