Lend More Without the Risk

Protect Your Clients’ Accounts Receivable with Trade Credit Insurance

Don’t Let Unexpected Bad Debt Cripple You

Credit insurance protects your borrowers’ accounts receivable against unexpected bad debt losses due to insolvency or slow payment. This multi-purpose tool is customized to your clients’ needs and can cover their entire receivables base or a logical segment. When your borrowers’ receivables are protected by trade credit insurance, you can lend more against their accounts receivable portfolio, without increasing the bank’s credit risk.

With trade credit insurance, your clients can:

  • Eliminate concentrations
  • Give higher advance rates
  • Reduce bad debt reserves
  • Fund on foreign receivables
  • Replace costly letters of credit
  • Avoid catastrophic bad debt losses
  • Improve credit department efficiencies and results
  • Expand sales to new and existing customers with less risk
  • Enhance balance sheet strength to improve lender relationship

Who are the best candidates for credit insurance?

Companies with B2B credit sales over $1M are the best candidates for credit insurance. Manufacturers, wholesalers, distributors and service providers that are growing, exporting, in need of working capital or have concentration risks may be good prospects for credit insurance. Top industries include:

  • Energy/Metals/Commodities
  • Machinery & Equipment
  • Chemicals
  • Electronics/Technology/Computers
  • Transportation
  • Lumber & Building Materials
  • Paper & Packaging
  • Automotive Suppliers
  • Food
  • Business Services

By partnering with Leykell, banks can:

  • Become beneficiary on clients’ policies in case of bad debt losses on receivables
  • Establish a deeper relationship with your clients through consultative positioning
  • Justify better advance rates and less restrictive covenants with credit underwriters
  • Strengthen clients financial position by insuring cash flow and balance sheet stability
  • Increase eligible borrowing base by including international receivables, aged receivables or concentrations

Trade Credit Insurance

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Start protecting your business today.
Be Prepared

High-Quality Commercial Risk Solutions

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