This week’s post and linked full PDF are by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.
As an executive leading a closely-held business and continually attuned to risk management, the risk of non-payment by a large customer poses a compelling question: Should your company purchase accounts receivable insurance?
Also known as trade credit insurance, accounts receivable insurance pays out when a customer fails to pay an invoice.
Rather than being a replacement for solid credit management, accounts receivable insurance supplements credit policies and processes.
Receivables insurance lowers customer concentration risk and can help obtain capital as banks view insured receivables as secure collateral.
Discussed in this week’s full PDF…
…are how accounts receivable insurance works, what it can cover, variables impacting premiums, and its multiple benefits.
Los Angeles and Southern California executives interested in knowing if accounts receivable insurance makes sense for their businesses can benefit from talking with a provider of outsourced CFO services.
A CFO professional can review accounts receivable processes and customer concentration risk to help determine if receivables insurance is a wise business decision.