Trade credit insurance: what is it and when to consider?
Research suggests that a Japanese construction company dating back to the 6th century is the oldest continuously operating commercial business in existence. The research conducted by folks much more intellectually gifted than me, develops the list of the Top 10 oldest companies in the world made up of businesses associated with construction, Inn & restaurant, winery, foundry, plantation, firearms, publishing, and candle manufacturing. This research was unable to provide any clue as to how many businesses were formed, failed, and liquidated since the 6th century. I suspect we can agree that the number has many zeroes behind it.
Your worst nightmare has come true - your biggest customer has not paid a substantial invoice. What are you going to do? Oh, wait. You have trade credit insurance for your business and this customer is covered by your policy. Phew.
But now what do you do?
You want to protect your company’s accounts receivable and you know you need trade credit insurance. You’ve found a broker who has helped you get quotes from several insurance companies. After examining the proposed or estimated premiums, deductibles, co-insurance, and other policy features, you would like to move forward. What happens now?
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.See how much more you can borrow by having Credit Insurance.