Accounts Receivable Credit Put Options
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Receivable Put Options
When credit insurance coverage is not available to cover a publicly traded entity (and some privately held companies too), an accounts receivable credit put option may be available to protect a supplier from customer bankruptcy. A credit put option is designed to pay 100% of the bankruptcy loss without any deductibles or co-insurance. The accounts receivable put option is 100% non canceable and can be purchased on either a 3, 6, 9 or 12 month terms.
While this form of coverage is more expensive than credit insurance, it provides a huge safety gap for suppliers extending credit to a publicly or privately held company when other credit insurance alternatives do not exist for the buyer.
While many traditional credit insurance companies refuse to take on the risk of certain major retailers, we have the ability to execute contracts immediately without delay. Some major retailers that receivable put options with 100% bankruptcy coverage is available on are: Burlington, J. Crew, Rite Aid, Toys R Us, Neiman Marcus, Sears, Kmart, Office Depot, Office Max, Bon Ton, Borders, Dollar General, Claire’s, Michaels Stores, AC Moore, Staples, Overstock, Best Buy, XM Sirius, HH Gregg, Saks, Neiman Marcus, Dillard’s, JC Penney, Charming Shoppes, Macy’s, Limited, Duane Reade, Home Shopping Network, Stein Mart, Pier 1, Tuesday Morning, Party City, Pacific Sunwear of California, Sprint Nextel, Eastman Kodak. Please note this list is not exhaustive. If your customer is not mentioned here, please contact us with the name of the account, address, and credit limit you are seeking for an immediate quote for 100% coverage.
Have a question about receivable put options? We can help! Feel free to email us using the form to the right or call 1-844-315-4985
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