Services

What Is Accounts Receivable Insurance?

Accounts Receivable Insurance is an insurance policy that protects your Accounts Receivable. “Your Sale”. It is a unique policy designed to ease the traditional problems of selling on open terms. A financial tool that hedges against risk!

WHAT GOOD IS A SALE IF YOU DON’T GET PAID?

How Does Accounts Receivable Insurance Work?

You insure your customers. There are multiple types of policies and coverage that can be customized to your needs. You can insure a single buyer, key accounts, domestic and international buyers or exports only, etc. Commercial Credit insurance enables you to safeguard your accounts receivable from the risk. It protects you against non-payment, insolvency and political risk so you can grow your business securely. It is a flexible risk management tool that can be custom-designed to cover one, some or all of your customer accounts.

What Are The Benefits Of Accounts Receivable Insurance?

Commercial credit insurance can protect one of your most important assets -your accounts receivable. This protection further allows you to:

• Grow your business into new markets or countries.
• Flexible credit terms while expanding your sales with confidence.
• Minimize catastrophic loss; in general most businesses have a single customer that makes up a substantial portion of their sales which can be disastrous in the event of default.
• Peace of Mind in knowing that customer defaults will be covered for not only for the cost, but the actual sale.
• Enhanced financing options, access to greater working Capital, increased borrowing base and/or more favorable negotiating terms.
• Minimize your reserve for bad debt.
• Invaluable customer knowledge is a powerful tool especially if your customer is in a foreign country where access to business operation is limited.

How Do We Find The Right Provider?

Just as there are multiple types of policies(i.e. single buyer, top customers, export only, etc…), there are also multiple carriers. Each carrier has their own forte and is constantly evolving. We represent all major carriers and will guide you through the entire policy process. Noble specializes in finding the right credit insurance carrier to afford the greatest protection to your accounts receivables, at the lowest cost. Whether you are doing business domestically or internationally trust us to find the right provider for you! YOU’RE IN NOBLE HANDS!

We represent two sectors in the Commercial Credit Industry, private and government. They both offer protection from non-payment, insolvency and political risk.

Private insurance companies provide an array of options and will insure both domestic and international customers. In general, most private carriers will share the risk, typically 90% indemnity.

Noble Risk Management works for you! We will find the right provider with the most comprehensive policy at the most competitive rate.

What Is Excess Coverage?

It is coverage needed on a customer in excess of your existing approved credit limit.

The risk underwriter on your current policy cannot approve the full credit limit however there is an alternative option. Excess coverage will protect you from insolvency on the excess amount of coverage provided. Typically the maximum excess coverage will match your existing credit limit and parallel your primary policy terms.

What Are Put Options?

Businesses find it extremely difficult, if not impossible to insure accounts receivable of a financially distressed company or when dealing with a high concentration.

An excellent solution to consider may be Account Receivable Puts which offer 100% non-cancellable cover on both distressed and investment grade names from 6 months to 3 years. AR Puts provide single debtor protection and are available mainly on Public companies or large Private companies with public debt.

Puts are rather costly, but can provide a sound solution to a risky opportunity.

What Is A Letter Of Credit Insurance Policy?

Letter of credit policies are designed for banks to reduce their risk on confirmations and negotiations of irrevocable letters of credit issued by a foreign lending institution.

In general, the policy protects against losses due to insolvency of the foreign bank and political risk such as war, revolution, or government confiscation amongst other unforeseen political circumstances etc.

Noble Risk Management has extensive experience in commercial credit and collection management. Managing credit risk can be especially demanding in today’s economy so it is essential that businesses develop and implement strong credit and collection processes.

We Offer Our Clients A Wide Array Of Credit Management Functions

Credit Management Functions include, but are not limited to:

• Customers Analysis (create or update credit applications)
• Credit Report
• Trade References
• Bank References
• Financial Statement
• Credit Limit etc…
• Billing (Invoicing)
• Aging Review (What’s your DSO)
• Collections (Improve cash flow)

Noble will dedicate the time to understand your business operations. Once we have carefully examined and evaluated customer credit histories, we can assess and recommend what improvements are deemed necessary. We understand that the collection process can sometimes be sensitive, but you can be assured that Nobles professionalism will only enhance your customer relations. Our assistance will promote cash flow, lower customer default, and enhance customer relations.

Knowing your customer better will not only protect you from potential loss, but may also uncover additional business opportunities.

Paper free! Be green…and keep our planet clean! Noble promotes a clean environment and we can update your customer profiles electronically. This can be done simply by utilizing your Microsoft Outlook software. Profiles, along with invoices, bill of ladings, payments and aging history, will be right at your fingertips. Whether you’re at a customer’s site, traveling or working from home, you will have the information that you need right at your fingertips.

How Do I Determine How Much Credit I Will Extend?

The first thing we assess is your customer’s information provided on the credit application followed by a credit report. We then review the amount of credit your customer is requesting and if the references and credit report support the request. If the requested amount is unwarranted, we will request financial statements and evaluate the strength of the company. The decision whether to expand business relations with a customer by extending credit should be given great consideration. We help gather and verify all of the facts you need to make an informed choice.