Accounts Receivable Insurance
Universal Funding provides accounts receivable insurance that helps protect clients from unforeseen and unexpected potential losses due to their customers’ inability to pay because of insolvency or bankruptcy.
The basic definition of accounts receivable insurance states that it is a form of credit insurance offered by commercial insurers to businesses. Accounts receivable insurance can take the form of multi-buyer insurance (a pool of receivables) or key buyer insurance.
Investopedia explains ‘Accounts Receivable Insurance’:
Account receivable insurance can be particularly useful for new or rapidly growing businesses that cannot afford to do credit checks. For a relatively low fee, account receivable insurance protects a company against loss on receivables, including default, bankruptcy or simply slow payment. This insurance can also protect a company that is unable to collect receivables due to loss of the underlying records (for example, in a fire).
At Universal Funding, we would assess the risk of your customers’ credit and payment cycles to determine a recommendation for accounts receivable insurance. This assessment is one of the added services we provide to all of our clients. If the assessment proves that your accounts would benefit having additional AR insurance, we would work with a third party vendor to provide those services.