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Lenders, Banks, Factors and Finance

TRADE CREDIT INSURANCE

Lenders, Banks, Factors

Lenders and borrowers have shared goals: maximize revenue and minimize risk. Sometimes these goals can conflict with one another.

ARI Global, and Trade Credit Insurance, provide a bridge to overcome obstacles such as:

  • Not allowing export receivables
  • Limiting buyer concentrations
  • Excluding customized inventory

 

Transferring the risk of these obstacles creates a win-win situation. The lender is able to keep its customer happy, leading to greater retention and the business increases cash flow needed to support future growth.

 

For example, a company with annual revenue of $25m (25% export) with monthly A/R of $4m

 

  • Without TCI
 
  • With TCI
  • $3,000,000
  • Eligible A/R
  • $4,000,000
  • 80% US / 0% export
  • Advance rate
  • 90% domestic / 75% export
  • $2,400,000
  • Maximum availability
  • $3,350,000
  • $0
  • Additional availability monthly
  • $950,000
  • $0
  • Additional availability annually
  • $5,750,000
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