Skip to main content

Posts

Showing posts from April, 2019

Credit Insurance-What you need to know

Accounts receivable contribute a major part to the financial assets of many businesses.  But if your clients are not able to pay what they owe you, such credit losses can be a threat to the success of your business. There could be many reasons why your customers may not be able to pay or meet the credit extended to them. These could be: ·          Bankruptcy ·          Insolvency ·          Default It could also be due to reasons beyond their control such as outbreak of war, riot, political or civil unrest that may block or delay payment for goods or services exported.  Economic difficulties or balance of payment problems may lead a country to impose restrictions on either import of certain goods or on transfer of payments for goods imported. This is where credit insurance can come to your rescue. This policy will cover a wide range of risks related to non-payments linked to trade that is both local and overseas. This insurance policy offers protection against default ari