Factoring company, Universal Funding recently renewed a key contract with insurance provider Euler Hermes.
“Three years ago we began offering accounts receivable insurance to our clients to protect against a loss on receivables,” shares Heather Dickerson, the Credit Manager at Universal Funding. “If a client’s debtor doesn’t pay on an invoice we can file an insurance claim on our client’s behalf and recoup the loss from insurance.”
This becomes an especially resourceful practice when a client’s customer declares bankruptcy and they still owe on an open invoice. The insurance policy lessens the loss that can result when an invoice goes unpaid.
What makes Universal Funding stand out from other factoring companies is their process of assessing the risk of their clients’ customers’ credit and payment cycles to determine a recommendation for accounts receivable insurance. This is a complimentary service that Universal provides to all of their clients. If the assessment proves that the accounts would benefit having additional accounts receivable insurance, they would work with Euler to provide those services. Other factoring companies make their clients responsible for researching and obtaining such policies.
Many times a business is crippled when one customer goes out of business and still owes funds for products and services already provided. Our goal is to make sure our clients are exposed to the least amount of risk when factoring their invoices with us. To make sure your A/R is protected, call 1-800-405-6035 to learn more about our invoice financing that has the added safeguard of accounts receivable insurance.