Credit insurance ensures that your company will be paid for merchandise or services delivered to your customer. This coverage, which can protect both export and domestic sales, includes loss from the insolvency of the debtor and usually includes past due items that cannot be collected.

Credit insurance helps helps in every phase of the credit process -- from analyzing credit risk of customers, to collection of debt, to reimbursement for losses due to insolvency of one or more of your customers. It is a comprehensive way for companies to protect their most valuable liquid asset and their cash flow.

A credit insurance policy allows you to improve your bottom line by:

1. Allowing you to increase sales. Businesses that insure their receivables are more likely to offer their customers higher credit limits and more generous terms. Companies can be more aggressive when a third party is assuming most, if not all, of the risk.
2. Providing credit information. Credit insurance provides reliable, expert opinion of a customers credit risk. This will prevent bad debt losses, as well as allow you to increase sales safely.
3. Lowering collection costs and contributing to fewer write offs. Credit insurers provide collection services, lowering costs of tracking down debtors and raising the possibility of receiving payment.
4. Increasing cash flow and lowering borrowing costs. Many companies who insure their accounts receivable are offered larger limits and/or lower borrowing costs by lenders.