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Credit Insurance and Accounts Receivable Insurance

Business Collection Agency

Business collection agencies specialize in recovering debts that are past due. These rely on various forms of communication to reach customers and persuade them to pay, including phone calls, letters and emails. In some cases, they turn to the legal system to collect if other efforts are unsuccessful.
Good collection agencies are effective in recovering debts because they understand which tactics and strategies are most effective.
While there are many reputable collection agencies, some agencies rely on unscrupulous, harassing or illegal tactics to collect, and that’s something to avoid at all cost because it reflects poorly on your business. There are strict laws surrounding collections efforts, and any reputable agency will follow them.

Working with a specialist can help you determine the best custom solution for your unique needs

Search the Association of Credit & Collection Professionals International (ACA International directly (http://www.acainternational.org/memberdirectory.aspx) to find a member agency that is licensed in your city or country. ACA International is a nonprofit agency that establishes ethical standards for the industry and requires its members to adhere to them.

enquiry form

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Frequently asked questions

A. No. Credit life or credit disability insurance is obtained by individuals to help pay debts in case of loss of income. Business credit insurance (also known as trade credit insurance, export credit insurance, or just credit insurance) is used to reduce the risk of non-payment in B2B transactions and is obtained by the company offering the goods or services, rather than the company receiving the goods or services.

A. There is no additional fee to use a broker. By law, you will pay the same rates for the coverage you choose whether you use a broker or work directly with the insurance company. However, a broker helps you evaluate quotes and implement your new policy. Brokers can also help with mandatory reporting requirements and may help you review future claims submissions.

A. The short answer is yes — because things can change. Business insolvency is predicted to increase due to global events. Evaluating the risk of non-payment requires considerable data collection and analysis. Your broker can help you figure out the right amount of coverage for your situation.

A. Trade credit can help you grow your business. When a business is able to purchase goods or services with trade credit, it frees up cash flow, making it a source of short-term financing. This practice allows the business to potentially expand its market or customer base without the negative impact of running out of cash, potentially putting them out of business. Many trade credit agreements incentivize paying early with a discount, so the business is able to decide whether to pay early at a cheaper price or to take longer to pay at full price — based on both money coming into the business and other expenses that need to be paid.

enquiry form

Contact CreditInsurance.com

Frequently Asked Questions

A. No. Credit life or credit disability insurance is obtained by individuals to help pay debts in case of loss of income. Business credit insurance (also known as trade credit insurance, export credit insurance, or just credit insurance) is used to reduce the risk of non-payment in B2B transactions and is obtained by the company offering the goods or services, rather than the company receiving the goods or services.

A. There is no additional fee to use a broker. By law, you will pay the same rates for the coverage you choose, whether you use a broker or work directly with the insurance company.  However, a broker can be a valuable resource, helping you evaluate quotes, implement your new accounts receivable insurance policy, and navigate mandatory reporting requirements. They may also assist with future claim submissions.

A. The short answer is yes — because things can change. Business insolvency is predicted to increase due to global events. Evaluating the risk of non-payment requires considerable data collection and analysis. Your credit insurance broker can help you figure out the right amount of coverage for your situation.

A. Trade credit can help you grow your business. When a business is able to purchase goods or services with trade credit, it frees up cash flow, making it a source of short-term financing. This practice allows the business to potentially expand its market or customer base without the negative impact of running out of cash, potentially putting it out of business. 

Many trade credit agreements incentivise paying early with a discount, so the business is able to decide whether to pay early at a cheaper price or to take longer to pay at full price based on both money coming into the business and other expenses that need to be paid. 

However, it also comes with the inherent risk of non-payment. Accounts receivable insurance can mitigate this risk by protecting you from losses due to customer default.