Credit Insurance For Exporters: What Business Owners Need To Know
As a business owner, you know how important it is to keep your business safe. When you engage in deals with others that don't require full payment up front, you know that you're taking a risk. It can be hard to rest assured that your business is going to continue moving forward when you can't be sure that you're going to get the money that you need to continue to grow. This can be especially true when you work internationally, and the laws in the home countries of the businesses with which you work are different from the laws in the United States. Credit insurance for exporters can be complicated, and it's important that you work with an insurance company that can fully protect your business. Let's take a look at some of the different types of export credit insurance you may want to consider purchasing in order to protect your business from absorbing the blow of financial stress experienced by companies who fail to pay on time (or at all).
Accounts receivables insurance - In your business, you do all that you can in order to ensure that your records are protected. That being said, the unexpected can happen, and records can be destroyed. In the event that your accounts receivables records are destroyed, it can be hard to recoup your accounts with companies that owe you money. This is where accounts receivables can be incredibly useful. In the event that you need to make an accounts receivables insurance claim, your accounts receivables insurer will use your accounts receivable totals from the previous year to create a monthly average payout amount. If you work in a seasonal business with large variations in your accounts receivables totals, your insurer may take this into account as well.
Credit insurance for exporters - As an exporter, it's important that you protect yourself when you work with companies in other countries. When you work with a foreign buyer, it can be hard to hold them accountable to the same laws you're subject to as a business owner in the United States. It's vital that you have credit insurance for exporters from a company that understands the tough aspects of working with businesses in other countries. When you work with a company that provides credit insurance for exporters, you're able to rest assured that you're going to get the money that you're owed, even if the company that owes you the money goes off the map or is otherwise unable to pay.
Payables financing insurance - When you owe other companies money, it's essential that you protect yourself and your assets from the unexpected. In today's unusual economic climate, it can be hard to predict what the future holds for your business. Whether you need to delay payments, or are unable to make payments at all, you want to be sure that your business is protected against the negative effects that come with failing to make payments to your creditors. When you work with a company that provides account payables financing insurance, you'll know that you're protected no matter what happens to your business.
When you're searching for the right insurance solutions for your business, Prudence Insurance Brokers LLC is here to help. Reach out to us today to learn more about how we can meet all of your export credit insurance needs.