Have you considered what might happen if clients aren’t readily forthcoming with their payment? Clients can default, go bankrupt or be just plain slow at paying your invoices. A fire in your office resulting in a loss of paperwork and computer files could also make tracking accounts virtually impossible. And events such as natural disasters, economic downturns and geopolitical upheavals are all factors that go towards client risk. The myriad of variables that cause serious delay or total loss of income could have serious repercussions for your business.
Accounts Receivable Insurance is an insurance segment that doesn’t readily come to mind. But it’s a very useful insurance medium and a great way to take control of your greatest asset – your customers – and especially beneficial for new businesses that might not be able to afford to undertake credit checks. Insurance can cover individual corporate clients or groups of clients that your business feels might be a risk. The extended credit lines that this insurance offers deliver the opportunity to maintain business growth.
ARI gives you protection for your receivables and the ability to monitor your risks in real time. Additionally the insurer will generally monitor those businesses that you have insured against. Should they ‘red flag’ a problem, they will contact your business which obviously allows you the opportunity to address the situation with your client before disaster hits. That’s definitely a winner for your business.