Credit AR Insurance
What assets are insurable and insured?
There is a greater chance that a business will experience a loss within their accounts receivable than any other asset.
Where does the A/R fall on a Balance Sheet?
- Typically represents 40% of a company’s assets
- Most vulnerable to unexpected losses
- Highly likely to be affected by business cycles
- Provides cash flow for the business
- Only under-leveraged asset
- Few companies can effectively compete without extending credit to their buyers