“However beautiful the strategy, you should occasionally look at the results.”—Sir Winston Churchill
Business credit insurance protects a critical part of your customer base. Most companies worry at the catastrophic extremes of their aging—large exposures to known risks, unfamiliar industries, new geographic regions. Here is something flawed, as it ignores that which sustains: the vast numbers of small and mid-sized enterprises that regularly buy.
Your critical vendors may expect prompt payment from you, while your large customers demand extended terms. The challenge for every B2B enterprise is marginalizing the lag between payments going out of to critical vendors and receiving payments from customers.
Commercial lenders know that past performance is no guaranty of future repayment. Yet, they are highly profitable, because lenders routinely hedge against the future risk of every borrower, through interest rate adjustment and collateralization.