Accounts Receivable Insurance

factoring invoices

Universal Funding provides accounts receivable insurance which helps protect clients from unforeseen and unexpected potential losses due to their customers’ inability to pay. Accounts receivable insurance is a form of credit insurance offered by commercial insurers to businesses and can take the form of multi-buyer insurance (a pool of receivables) or key buyer insurance. Here is a brief explanation of accounts receivable insurance by Investopedia.

Accounts receivable insurance can be particularly useful for new or rapidly growing businesses that cannot afford to do credit checks. For a relatively low fee, accounts 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 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 work with a third party vendor to provide those services.

Protecting Your Profits

Accounts receivable insurance offers protection from non-paying customers who have become delinquent in paying your invoices. It is very useful for a business that is growing rapidly and does not have the resources to do regular credit checks on new and existing clients. By partnering with a factoring company like Universal Funding who offers this added benefit, your company can get accounts receivable insurance that will protect you against lost receivables. This includes receivables from companies that have defaulted, claimed bankruptcy, or failed to pay within the allotted terms. The insurance protects your company in case you are also unable to collect money from the client and helps to provide the much-needed protection that you need to manage your business profitably.

Give us a call today at 1-855-782-1493 or complete our rate form and a factoring specialist will get in touch with you right away to determine if accounts receivable insurance is the right answer for your business.