Credit Put Options
When Credit Insurers Don’t Want the Risk, Talk to Us
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What do you do? On one hand, you can accept a scaled down version of your policy and assume the risk yourself on the accounts that weren’t approved. On the other hand, you can buy a credit put option to compliment your policy to cover unapproved accounts instantly, with 100% coverage, instant contract execution, and peace of mind knowing you’re fully protected. Up until now, companies had little choice but to accept the reduction of credit limits and outright denials on key customers by credit insurers. Fortunately today, the use of credit put options level the playing field allowing formerly denied accounts the opportunity to be credit approved. An accounts receivable credit put option is a simple contract between the seller (vendor) and the credit put purchaser (major financial institution). The vendor pays premium for specified receivables during the contract period. If the vendor’s customer files bankruptcy, the put option is exercised and the vendor is paid 100% face value of the covered receivables. 1) No deductibles 2) No cancellations 3) No credit limit reductions 4) No need to insure entire portfolio 5) No customer notification
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Your biggest customers are denied coverage from your credit insurer.| The Bottom Line |
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A Credit put option not only protects your profit, it guarantees you will get paid for what you sell. Transfer the risk to another entity and please your shareholders.
What you buy is a Credit Put Option: what you get is peace of mind and profit protection. Call Trade Risk Strategies today: 1-631-585-0960 |
Consider the Benefits
- Indemnify your company against catastrophic bad-debt losses from unpaid invoices caused by bankruptcy
- Protect precious cash flow and balance sheet strength
- Relieve concentration risk
- Reduce collections costs
Let Trade Risk Strategies help you protect and profit your business. Fill out the form to the right or call us today at 1-631-585-0960 for a custom, one-on-one consultation.
