Credit Insurance is an insurance product that protects companies against bad debt. If your company has a Credit Insurance policy, and one or more of your covered customers defaults on paying you, the insurance policy will pay you instead. Credit Insurance can benefit your company in a number of ways:
- Credit Risk Protection – Protects your company against bad debt, especially the catastrophic effects on your business if one of your key customers unexpectedly defaults on paying you.
- Sales Growth – Credit insurance can enable you to increase credit lines to existing customers, extend credit confidently to new customers, or enter new markets. If you export, Credit Insurance can help you compete more effectively by enabling you to offer open account terms to your foreign customers instead of insisting upon letters of credit or other types of secured payment.
- Enhanced Bank Financing – If you are doing asset-based borrowing, protecting your accounts receivable with Credit Insurance enables you to enhance the borrowing agreement with your bank – increased borrowing capacity or reduced fees for example.
For more information on Credit Insurance options for your business and a free business insurance consultation, call us today at 800-322-3623 and we'll connect you with a First Midwest Business Banker.