If you’ve ever wondered if an invoice is ever going to get paid….you don’t need to ask yourself “what are the benefits of credit insurance coverage?” However, credit insurance is often a worst-case scenario solution and other solutions like training and coaching your finance team to be proactive or aggressive around collecting unpaid accounts receivables, developing standardized best practices, policies and procedures, the use of a reputable collections agency etc. are all good steps to helping reduce the impact of not being able to collect on an invoice.
What is Credit Insurance?
Credit insurance, otherwise known as trade credit insurance, is a type of commercial business insurance that ensures you will receive the money you are owed if a customer is unable to pay. Many business owners purchase credit insurance for the peace of mind it offers. It is especially important for multinational businesses or those with international customers, as with this type of insurance, you won’t have to worry if a foreign customer is unable to pay due to blocked funds, political unrest, or another unforeseen circumstance.
So what are the benefits of credit insurance coverage?
The benefits of credit insurance coverage are numerous and we’ve outlined a number of them below:
- One of the key benefits of credit insurance coverage is that it can cover your Canadian, US and Foreign sales/accounts receivables for non-payment.
- Credit insurance coverage covers large, medium and small invoices to regardless of the size of your business or that of your customer there is coverage suited for you
- Another of the benefits of credit insurance coverage is that it can cover up to 90% of an invoice which is unpaid.
- Credit insurance coverage if for a wide range of reasons that you haven’t received payment including political, bankruptcy etc.
- The ability to free up cash flow by using credit insurance coverage to increase your business’s ability to secure or increase financing is one of the benefits of credit insurance coverage.
- Credit insurance coverage can help you grow your business by feeling comfortable in promoting your business in new markets globally as you have the certainty of receiving payment.
- ALIGNED Insurance brokers can secure credit insurance coverage from many leading providers including EDC, COFACE & Euler so you have choice
What can credit insurance do for your business?
If you’re wondering what credit insurance can do for your business, you’re in the right place.
- Credit insurance can protect your business: Credit insurance can help businesses protect their balance sheets, safeguarding against everything from insolvencies and slow payment to political risk and blocked funds.
- Credit insurance can fund your business: This business insurance solution can fund your business by securing an otherwise unprotected asset, resulting in an increase in working capital access on domestic and export A/R.
- Credit insurance can grow your business: With credit insurance in your back pocket, you will feel empowered to approach foreign markets the same way you do local ones and offer longer payment terms, resulting in growth for your business.
Where can I purchase credit insurance?
You can purchase credit insurance from a wide range of insurance companies in Canada. However, the wisest decision you can make is by purchasing credit insurance from an insurance broker. Insurance brokerages like ALIGNED Insurance make shopping for credit insurance easier than ever before.
Our expert brokers can answer any questions you may have, obtain and compare quotes on your behalf, and walk you through your policy options. Find comprehensive coverage at a great rate with ALIGNED. Contact us to get started or click here for a free quote.
|ALIGNED Across Canada 100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves more than 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.|