COMPETITION ON CREDIT

Most products and services are sold on what are called open account terms. That is, the supplier extends credit to the buyer of the goods by offering a defined period to pay for the goods. This time period could be 30, 60 or 90 days.

Credit is important because it is a competitive tool for trading companies. Competition takes place as much because of credit as it does on price. This is because for most companies, cash flow is crucial.

Improved Bank limits and confidence in your company

Banks and other lenders are concerned that they should only lend to companies that are secure and not in any danger of becoming insolvent and, therefore, defaulting on their loans. Banks are be­coming more and more interested in re­ceivables insurance, a policy for which can be assigned as collateral to a bank

Receivable Insurance gives improved credit control

Credit information services can act as a credit management department for a company, providing information on trad­ing partners. With this information, the company can then decide whether or not to trade with a company, and whether or not to offer credit. This can be an invalu­able service, providing up-to-the-minute financial information on companies worldwide.

Receivable Insurance gives Balance sheet protection

Many companies today are concerned with balance sheet protection. This is becoming a major driver in all areas of insurance, as companies reduce the amount of insurance they buy at the lower levels. Self-insurance is becom­ing popular, but there is still concern over the possibility of a major incident causing a hole in the balance sheet that would have to be explained either to the parent company or to shareholders.

Receivable Insurance helps to increased sales

Receivables insurance can allow the credit manager or credit management department to provide positive benefits for the sales team, and can increase sales by us­ing it to offer better credit terms and, thereby, win business.

Let’s Chat now over a coffee before it too late call Glenn at 1.888.256.8685 or glenn@cuttherisk.com

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