Insured Accounts Receivable Loans
GBCIB Insured Accounts Receivable Credit Lines are based on insured Account Receivable collateral. The Accounts Receivables are insured by one of the major commercial insurance carriers or by Exim Bank against losses that result from non-payment of receivables because of the insolvency of buyers or protracted default. Essentially, credit insurance makes certain that non-disputed accounts receivable will be paid, either by the debtor or by the insurance company. Both domestic and foreign accounts receivables can be covered. This is especially useful for exporters, for whom foreign receivables are generally excluded from the pool of eligible collateral. A portion of your A/R's might be excluded from the borrowing base for other reasons such as too much concentration with certain customers. By insuring your receivables, your company can transform those ineligible receivables into eligible, thus maximizing your funding. Beyond financing, A/R credit insurance can help with sales by allowing you to offer open account terms. This is especially true for exporters who now require letters of credit as payment terms from their foreign customers. While L/C payment terms address the issue of credit risk, they may result in sales being lost to competitors who are willing to offer open account terms.
We can help you arrange A/R credit insurance and we can provide financing up to 90% of the insured pool.
