The Credit Insurance Source in Matawan, New Jersey, specializes in credit and bad debt insurance, protecting domestic and export accounts. Contact our specialty insurance broker today to find out how we can save you money, while customizing your insurance needs.
Credit insurance is a management tool that is available to manufacturers, wholesalers, or service companies that sell on open credit. It protects your largest asset, accounts receivable, against a loss that your company had no control over — your customer's inability to pay. If your customer cannot pay due to a bankruptcy, insolvency, or other forms of nonpayment — credit insurance can pay. More and more companies are selling to customers throughout the world. The Credit Insurance Source specializes in export credit insurance.
• Risk Mitagation - Protects receivables against large unexpected credit loss(es). A credit insurance policy
transfers credit risk to an insurance company. This includes Chapter 11 or Chapter 7 bankruptcy, and other forms of
nonpayment, such as inability to pay and political loss on foreign sales.
• Safely Increase Sales - We will help safely increase sales to existing customers, and help you gain new customers that may not have been previously
possible by transferring the credit risk to an insurance company. We can even assist in creating sales to new markets by offering open credit terms
instead of Letters of Credit or other secured terms. This is a global economy, and to be competitive, most foreign traders realize that open
credit terms must be offered.
• Improve Borrowing Capabilities - Many times lenders are setting limits on your availability because of credit concern on buyers, industry,
concentration issues, payments that are more than 60 days past due, or foreign receivables. As a result of your carrying a credit insurance policy,
a lender can increase the borrowing limit and/or increase the advance percentage of eligible receivables,or even reduce the interest rate. Typically,
the increase on eligible receivables can be 5-10%. Enhance credit management and collect problem receivables more quickly with expert
third party evaluation of credit risks.
Who Are Candidates?
Any company selling on open credit is a candidate. In addition, if approximately 80% of sales come from 20% of your customers, the 80/20 rule applies making you a candidate. Companies that a rapidly growing, with minimal credit departments or staffs, large borrowing requirements, or that are growing in high-risk industries or with high credit loss experience are also candidates.
The sales minimum is usually over $2,000,000 domestic, but can be lower for export sales. The following are a few sample industries that may be candidates:
• Auto Parts
• Computer Parts
|• Electronic Parts
• Consumer Products
|• Machine Parts
• Aircraft Parts
• Wire and Cable