Insurance for Sleeping at Night?

Have you ever woken up in the middle of the night worrying about an existing outstanding receivable?

The customer says they are going to pay you, but have yet to make good on their promise. 

Might you be second guessing that next shipment of product you sold them when they haven’t paid for their first? 

Has your customer’s open balance gotten so high that it could now truly hurt your cashflow if they don’t pay? 

If so, I’d recommend looking into “sleep-at-night” insurance (trade credit insurance). 

What is “Sleep at Night” Insurance?

As Forbes recently published in January, credit insurance is the 2nd most important insurance policy that people don’t buy…but should.

Many companies experience this sleeplessness when they just don’t have to….

You don’t think twice when insuring your trucks, buildings, equipment, etc. 

But the reality is, your A/R can make up to 40% of your assets and is the most commonly uninsured. 

Not to mention, you are more likely to file a claim on your A/R than the fire insurance for your building. 

For a fraction of a penny per gallon, it makes almost too much sense to explore how credit insurance can help your company.     

Credit Insurance for Dummies

Credit insurance is a cost-effective sales tool that allows you to insure your receivables so you can safely sell more to your existing customers, go after new customers that may have been a credit risk in the past, and expand into new markets that you originally perceived to be too risky. 

Credit insurance offers solutions for safe and profitable growth:

• Grow sales safely, domestically and abroad, to new and existing customers
• Protect your business from risk of non-payments
• Make better and faster credit decisions
• Ease tensions between sales and credit
• Avoid personal guarantees
• Borrow better from the bank by eliminating concentrations and obtain higher advances with lower rates
• Eliminate letters of credit and replace them with a tax-deductible insurance provision
• Gives you leverage to collect from your customers

Examples of TCI Benefits by Industry

Manufacturing:

• Receiving more comfortability with your client during pre-shipment
• Win more business by requiring less deposits and extending instant credit terms
• Access to more capital from your bank to source more material
• Receive better credit terms or larger credit lines from your vendors

Healthcare

• Hospitals are notoriously slow payers, shave down DSO.
• Win more business by being able to better finance bills into the healthcare space.

Transportation:

• Need for fast credit approval
• Ability to manage credit seamlessly between 3PL and LTL
• You have short terms, so get your money quickly.
• Support thin margins
• Pre-Screen clients to win loads right away

Construction:

• General Contractors love to have peace of mind when taking on new developers
• Eliminate constraints of pay when paid.
• Get real data to avoid surprise bankruptcies
• Win bids by accepting longer terms

- Get funding to support this.

• Help navigate through disputes

Food for Thought

Have you ever limited sales to a client and why? We have a solution.

Did you write off more than 1% of you’re A/R? We have a solution.

Do you need more capital from your bank? And we have a solution for that!

Contact us to see how credit insurance can help grow your business while protecting you from losses. 

Insure your receivables and get some sleep…finally.    

Cory Watson

Vice President, Trade Credit and Business Insurance

T +1 817-600-1916 | M +1 817-715-5678

1600 West 7th Street | Suite 300 | Fort Worth, TX | 76102

Cory.Watson@MarshMMA.com|

Ryan Hurtado

Trade Credit Consultant – Advisor, Business Insurance

CA Producer License # 0M93536

M +1 682-216-9544 | O +1 512-382-2129

Ryan.Hurtado@MarshMMA.com | MarshMMA.com