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Accounts Receivable Insurance

What is it?

As the name suggests ARI is a risk transfer tool that protects the insured's Accounts Receivable from losses resulting from:

  • default by the buyer;
  • insolvency of the buyer;
  • repudiation of goods placed at the buyer's disposal;
  • incovertability or transfer of foreign currency;
  • war and related disturbances.

Benefits of Accounts Receivable Insurance

  • Protects the company's second most liquid asset. Take a look at your Balance Sheet. Every asset with one exception-your Accounts Receivable!- is insured.
  • Peace of mind and another set of eyes validating your buyers' creditworthiness.
  • Enhance your access to much needed working capital by pledging or selling your credit-enhanced Recaivables to a bank or other financial intermediary
  • Free up your limited capital for more productive uses.
  • Improve your cost of capital.
  • Give yourself a competitive advantage in a very competitive global market place by offering buyers or prospective buyers more liberal payment terms.
  • Grow your top line by selling to buyers or into developing markets that you would otherwise consider too risky.

These benefits flow to your bottom line!