Domestic Credit Insurance
DOMESTIC TRADE CREDIT INSURANCE
Domestic Trade Credit Insurance is a regulated insurance policy that protects a U.S. company’s sales from nonpayment by any of their customers located in the United States, Canada and Puerto Rico.
Domestic Credit Insurance protects a business’s accounts receivable, often a company’s largest asset, against losses due to a covered customers financial inability to pay a legally enforceable debt. This can include mitigating losses due to insolvency, slow payments or denial of payments.
Companies that use domestic trade credit insurance can:
By removing the risk of nonpayment, a company can sell more to both new and existing customers, enter new markets with confidence and insure new product lines.
- Industry specific underwriting aided by multiple information sources
- Ongoing credit monitoring with a focus on deteriorating risks
- Dedicated ARI Broker and customer support teams
- Third-party debt collection services, if needed
Insured domestic accounts receivable are stronger collateral for a lender than uninsured receivables. This allows a previously ineligible receivable to become eligible to be borrowed against. This availability further fuels sales expansion and allows a business to gain more favorable financing terms.