Our Solutions
Our Solutions
Credit Insurance
In the dynamic landscape of commerce, safeguarding your business against the risks of non-payment and customer insolvency is crucial. Business credit insurance, also known as trade credit insurance, empowers you to navigate these uncertainties with confidence. This powerful tool acts as a shield, protecting your accounts receivables from potential losses and ensuring the stability of your cash flow.
Why Credit Insurance?
Business credit insurance offers a range of benefits, including improved cash flow stability, reduced credit risk exposure, enhanced customer relationships, and the ability to explore new markets with greater security. It offers a safety net, enabling you to extend credit to customers without the fear of financial losses due to default or insolvency.
How does it work?
Here’s a glimpse into how Business Credit Insurance operates:
- Risk Assessment and Policy Setup: Businesses collaborate with a credit insurance provider to evaluate the creditworthiness of their potential customers.
- Policy Customization: Based on the risk assessment and the business's needs, a customized credit insurance policy is established.
- Credit Decisions: With the information provided by the credit insurance provider , the business can make informed credit decisions and confidently extend credit to customers with lower risk profiles.
- Credit Insurance Activation: When the business extends credit to a customer, the credit insurance policy is activated for that specific transaction. The policy acts as a safety net in case the customer fails to make the payment.
- Default or Insolvency: If a customer defaults on payment or becomes insolvent, the business can submit a claim to the credit insurance provider. This claim seeks compensation for the covered amount of the unpaid invoice.
- Global Coverage: Business credit insurance can extend to international transactions, allowing businesses to engage in cross-border trade with greater confidence.
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CREDIT INSURANCE
FAQ
Business Credit Insurance, also known as trade credit insurance, is a risk management tool that protects businesses against the financial impact of customer non-payment or insolvency.
We offer Credit Insurance Nationwide to all types of businesses, whether they are trading nationally or internationally, and for various sectors from manufacturing to services.
We also offer Credit Insurance to Banks or Factors interested in protecting their loan portfolios.
Business credit insurance is specific to credit-related risks, protecting against non-payment by customers. It differs from general liability or property insurance.
Coverage limits are determined based on the insured’s sales volume, customer concentration, industry risk, and creditworthiness of customers.
If a customer fails to pay an invoice due to insolvency or default, the insured business can submit a claim to the insurance provider. The provider compensates 90% of the covered amount, reducing the financial impact.
Yes, businesses can usually select which customers to insure based on risk assessment. High-risk customers might have higher insurance costs.
Yes, business credit insurance can cover international transactions, protecting against risks associated with foreign customers, political events, and currency fluctuations.
Yes, some lenders might view business credit insurance as a risk mitigation tool, which could positively influence financing options.
When a customer defaults, the insured business submits a claim to the insurance provider with supporting documentation. The provider evaluates the claim and, if approved, provides compensation.
When working with AmRock Financial, you will get to work with a knowledgeable expert on factoring providers that can help you review the terms, rates, and fees associated with factoring to make an informed decision.
Why Amrock Financial?
AmRock Financial has provided $1 billion + in financing to more than 400+ small and mid-sized businesses in the US and Canada over the last 16 years, working with a pre-approved network of 1700+banks and Non-bank lenders nationwide.
If you are looking for a business loan, refinancing or additional working capital, we provide Debt Structures from $1 million to $100 million.
Although banks have reduced lending in today’s market there are many other funding options available to you.
If you’re interested in scheduling a 30 min introductory call, book a meeting here:
Overview of our
Financial Solutions
If you’re in need of financing for your business, asset-based lending provides a unique and flexible solution leveraging your company’s tangible assets.
If you’re a small business owner seeking financing, the U.S. Small Business Administration (SBA) offers a range of loan programs to access affordable capital with favorable terms and flexible repayment options.
Factoring can be a valuable financing solution to improve cash flow. Convert your accounts receivable into immediate cash to optimize your cash flow.
Whether you’re an aviation enthusiast or a business professional seeking to acquire an aircraft, we’re here to guide you through the process.
A specialized financing option designed to help businesses cover the costs of fulfilling customer orders without depleting their working capital.
Trade financing can provide you with the necessary working capital solutions, and risk management tools to navigate the complexities of the global marketplace.
- 1001 Brickell Bay Drive 27th Floor Miami, Florida 33131
- 305-440-8480
- applications@amrockfinancial.com