Protecting One of Your Biggest Assets
Credit Insurance for Staffing Firms and PEOs
Few staffing firms and PEOs can effectively compete without extending credit to their clients. But, each time a business grants credit to a customer, it’s also taking a chance the debt won’t be paid. This puts the business’s cash flow and profitability at risk, since one large unpaid invoice could have the potential to significantly impact the bottom line, halt growth or even trigger insolvency. Representing up to 40% of a typical company’s balance sheet, accounts receivable are naturally both a vital and vulnerable component of a healthy business.
Non-payment is a major exposure for staffing companies and PEOs. Credit insurance ensures invoices will be paid resulting in safer and more strategic accounts receivable management.
Credit insurance ensures a company is growing sales safely with new and existing customers. The key to protecting the accounts receivable begins with understanding the client’s financials to make informed credit decisions and minimize losses. This type of insurance can help companies cultivate clients in sectors or geographies outside its traditional client base.
People sometimes believe that because you’re dealing with a brand name customer you’re going to get paid, and that’s not always true. This is why it’s so important to have insurance coverage that proactively collects financials on new and existing clients.
Credit insurance not only provides protection in the case of customer default, but also helps optimize your credit function support. There are a variety of firms that provide the insight and resources you need to manage, maximize and protect your receivables. Our underwriters are industry specialists who will work closely with you to deliver in-depth credit analyses and ongoing account monitoring to provide early warning of potential credit risks before it becomes a loss.
For more information about this coverage and how it can minimize risk for your staffing organization or PEO, contact a member of the ‘A’ Team.
- Giving Credit Where It’s Due: Credit Insurance Explained
- Protect Receivables with Credit Insurance
- Liability E-Book
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