Safeguarding your bottom line with trade credit insurance
In 2009 more companies around the world went insolvent than any year since World War II.
Trade credit insurance is a highly specialized type of insurance coverage designed to reduce the risk of losses on commercial accounts receivable from domestic, export and international sales.
Coverage provided by United Trade Credit serves as a strategic management tool by protecting policyholders from commercial accounts receivable losses following a customer’s bankruptcy or payment default, or events in overseas markets such as political turmoil or import and trade restrictions. Policies can be designed to cover domestic receivables, export receivables or both.
Assuming a company’s profit margin is 5% and just 1 customer defaults on a debt of $50,000, you will need an additional $1 MILLION DOLLARS in sales to make up for lost profits.
Lost profits can have devastating consequences for a company. It can weaken a company’s financial viability and lower its investment capabilities.
Ask yourself, can you continue to leave 35-40% of your assets unprotected.
United Trade Credit, Inc. “Safeguards Your Bottom Line”
