Credit Insurance

Beacon Business Capital offers Credit Insurance to companies seeking to protect their accounts receivable against bad debt. Credit Insurance is offered by private insurance companies to business entities for the purpose of protecting accounts receivable from loss due to credit risk such as protracted default, insolvency or bankruptcy. This type of insurance can be used to protect both international and domestic trade credit transactions.

In addition to increased risk of non-payment, international trade presents the problem of time line between product being shipped and its availability for sale. The account receivable is similar to a loan and represents capital invested, or often borrowed, by a vendor. This is not a secure asset until it is paid in full. If the customer’s debt is credit insured, the risky asset becomes more secure, like that of a large structure. This asset may then be viewed as collateral by lending institutions and loans made based upon the collateral may be used to defray the expenses associated with a transaction and to produce more product.

Even though trade credit insurance has been most notably known for protecting foreign or export accounts receivable, there has always been a large industry segment that uses Trade Credit insurance for domestic accounts receivable protection as well. Domestic Trade Credit Insurance provides protection for the companies they need as their customer base consolidates or becomes concentrated with larger receivables to fewer customers. Concentrations cause larger exposure and greater risk if a customer does not pay the account receivable. Without credit insurance, banks and lenders are reticent to lend where there are large concentrations in place.

Many businesses extend trade credit to other commercial entities they sell to every day. Most companies don’t think about or fully comprehend the risk being assumed when selling on credit terms. What impact does non-payment have on a company when a customer defaults or unexpectedly closes their business? A single loss can gravely impact the bottom line of any company without trade credit insurance coverage. Credit Insurance is a financial tool that provides your company with peace of mind and protection against loss from bad customer debt.

Accounts Receivable is largely recognized as the biggest asset of many industry types. Consequently, this asset is extremely vulnerable to unexpected loss. Most companies acquire insurance coverage for their business structures, equipment and machinery, fleet insurance and more, but do not give consideration to protecting themselves against excessive write-offs due to slow payment and non-payment. Credit Insurance pays you when your customer cannot.

Beacon Business Capital partners with a premiere national credit insurance brokerage firm that enjoys long standing relations with over 10 global credit insurance carriers. Based upon your needs, we help you obtain the best policy structure, coverage and premiums for your company. Interacting with captive agents of insurance carriers ensure you will get a level of expertise inside of that single carrier, but using a broker allows for comparison of policies which allow you to maximize the benefits of a credit insurance policy. Beacon Business Capital ensures you obtain the most comprehensive and cost effective structure available at no additional cost rather than a time consuming single carrier approach.

Whether you are seeking Credit Insurance for Domestic or International Accounts Receivable, at Beacon Business Capital, success means understanding your business goals from the start. And it’s measured by your satisfaction as we deliver a brand of highly personalized services that swiftly and surely lead you to that next level of success. Beacon Business Capital helps companies across the country attain unprecedented growth through easy-access funding and trade credit protection. Call us and learn how we can help you improve your business and take advantage of new opportunities today! 713-828-9085