Benchmarking Credit Insurance: Benefits - Raw Data
Credit Today's Benchmarking Survey on Credit Insurance asked respondents for the benefits of using credit insurance. The following is the raw data in response to that questions: To give a new opinion We have had a few claims paid however they are now cancelling most coverages somewhat defeating the purpose of the insurance in the first place. very little As this point just piece of mind since our policy has only been in place about 4 months Having credit insurance allows us to expand sales activity in with the named buyer in the geographic areas served. Expanded overseas markets We only insure our large accounts and by having credit insurance on these accounts, we can service them knowing we are protected. More control on risk. Able to sell more product than if we were selling on open credit. We have a small staff, which would be unable to manager open credit to our international customers. In 18 months of active sales throughout South America, with credit insurance, we have incurred no losses. In addition, we have increased our sales during this period three fold. We are able to borrow against our foreign sales since they are insured.
An extremely helpful sales tool - This allows us to extend additional credit in a secured manner Our policy provides for insurance against catastrophic loss, and the policy has the additional effect of making risks more quantifiable and visible. Allows for potential increase of sales, significant reduction to potential Chapter 7 or 11 liabilities, significant reduction to bad debt, aids in asset based lending where applicable We just started with AR Insurance so no rating on Insurance companies including the one we are now using. Safety from unknown risk Allows us to grow business in high risk areas and cover large high risk exposures.
Only purchased for 1 large account, so not a lot of experience or knowledge as yet. Nothing other than catastrophic coverage. Maybe some confirmation of decisions, but, not so much. None Able to ship goods quicker. Able to increase credit lines and improve total sales. Less employee time to manage the account. More assurance specialty manufactured products will be sold and not cancelled. The insurance has paid for itself. Our losses have not been great but losses v. premiums have just about balanced. helped us to protect against the "big blow" that was unforeseen. helped us to instill some discipline into global practices RE credit reporting and collection agency work. We have been able to be a little more flexible on terms and have been able to increase our credit line to carry some of our major dealers through bad weather Has allowed our company to expand credit limits and offer open terms to selected customers that were previously paying cash. Our banks love it. We leverage the Insurance gambit for deeper information from our accounts and cooperation. We use the insurance company as the bogey man. Use insurance Co. as reference as well. please do not quote me on this survey Allowed us to ship customers that we wouldn't have been able to without the insurance. Were paid on bankrupt accounts. SO MANY PEACE OF MIND IN TIMES OF POLITICAL UNCERTAIN
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