An Alternative to Credit Insurance
Running a business on credit terms comes with its inherent challenges. Many businesses face bankruptcy and survival issues as a result of significant aging receivables and bad debt losses. While credit insurance may be an approachable credit risk management method, there are other strategies available such as accounts receivables management and accounts receivable financing.
The accounts receivable management strategy encompasses the entire process of credit protection. It involves managing customer database, conducting relevant research and analysis, assessing credit decisions, accelerating account receivables collections, creating insightful receivables reports and maintaining cordial customer relationships.
Accounts receivable management provides an alternative to credit insurance and may be more cost-effective than obtaining a credit insurance policy. Comprehensive credit and collection services from the Accounts Receivable Management service is provided with only a small increase in cost over credit insurance. Improving your cash flow via our professional collections services and providing credit protection for your accounts receivable, ensure bad debt loss does not impact your business. Unlike credit insurance, your annual premiums do not increase based on your loss experience.
Accounts receivable financing in the form of factoring helps advance your cash inflow as cash is being made available for your operating needs when you invoice and not when (or if) your customer pays. The factoring agency advances a percentage of your accounts receivable for a fee, while they take up the responsibility of getting payments from your customers. This distinguishing feature of factoring enables your business to focus on more productive operational activities as opposed to only utilizing a credit insurance policy.
With the accounts receivable and factoring services, comes a transparent and upfront awareness of costs required to advance your customer payments. Your business is aware of the associated one-time fees and thus enables more effective cashflow management. The credit management option saves your business time and effort that would have been otherwise spent on pursuing aging receivables; it also prevents a possible cash crunch situation from funds being tied up in accounts receivable.
Your Credit Risk Solution with Accord
Regardless of the size and stage of your business, Accord Financial provides an easy and straightforward solution to your credit risk through expertise accounts receivable management and accounts receivable financing.
The Accord Financial advantage presents your business with a flexible and affordable approach towards credit risk management. With best-in-breed technology, industry expertise and credit collection expertise, the team at Accord takes care of your customer base, provides cash solutions and supports your business to achieve its goals and objectives.
Expedite your cash inflow and protect your business from bad debt losses with Accord, we add value to your business and pay you even when your customers aren’t able to. We provide customer credit analysis, effective credit risk management strategies and a one-stop solution to all your account receivables management needs.