1. What assets are insurable and insured?
There is a greater chance that a business will experience a loss
within their accounts receivable than any other asset.
Where does the A/R fall on a balance sheet?
• Typically represents 40% of a company’s assets
• Most vulnerable to unexpected losses
• Highly likely to be affected by business cycles
• Provides cash flow for the business
• Only under-leveraged asset
• Few companies can effectively compete without
extending credit to their buyers
Catastrophic Risk Protection
• Prevents disruption to cash flow and protects one of
company’s largest assets
• Caps exposure to bad debt loss
• Reduces risk of key account concentration levels
Sales Expansion
• Expands sales into riskier or new markets
• Enhances a customer relationship by offering more favorable
terms without additional risk
• Grow with existing accounts, offer open terms to
new accounts
Credit Function Support
• Provides a structure and discipline for credit decision making
• Delivers fast fact-based credit decisions of customers,
prospects, industries and countries
• Gains leverage over problem accounts by using underwriter’s
clout and resources for collections
Export Sales Protection
• Offers for open terms for entire year and eliminate need
for letters of credit
• Provides political risk protection (currency, import/export
changes, foreign government)
• Allows for borrowing against your export AR with your bank
line of credit
Bank Financing
• Enhances Lending Relationship...
• Eliminates concern on high concentration with key accounts
• Allows for borrowing against export receivables
• Provides more capital at reduced rates, taking full advantage
of A/R Reduction in Bad Debt Reserves
• Frees up working capital
• Converts non-taxable deductible provisions into a fully tax
deductible insurance premium
Key drivers for purchasing Trade Credit Insurance
Is one of your largest
assets unprotected?
Accounts
Receivable
(uninsured)
Land & Buildings
Machinery &
Equipment
Inventories Senior
Executives
Cash
Jamie McNeill, BB&T Insurance Services, Inc.
3318 W. Friendly Ave. | Suite 400 | Greensboro, NC 27410
Office 336-547-2135 | Fax 888-831-8409 | Cell 336-456-1826
jwmcneill@bbandt.com