(NC)—For a business owner, some of the most stressful times in running a business happen when customers are slow to pay their bills -- or fail to pay them at all. Payments may be withheld by a client due to their insolvency or slow payment by their own customers.
Whatever the reason, unpaid receivables can put your business cash flow at risk and may even threaten the future of your business.
“Even when dealing with good clients, there are many unforeseen circumstances that make it impossible to collect on overdue accounts, says Simon Gilmartin, vice president of Insurance Business Markets at RBC Insurance. “These types of situations could prove extremely devastating to the future viability of the business, especially in high-risk and low-margin industries.”
One step business owners can take to protect their business from the impact of unpaid receivables is to purchase trade credit insurance, designed to protect a company's accounts receivables from losses due to credit risks.
Trade credit insurance can even help companies expanding into unfamiliar or new international markets that may be prone to political uncertainty or economic instability. Imagine how much more complicated it can be trying to collect from a bankrupt or slow paying customer located in a foreign country.
For more information on trade credit insurance, visit your local RBC Insurance branch, call 1-877-91-ROYAL (1-877-917-6925) or visit www.rbcinsurance.com/business.
Source: www.newscanada.com
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If you are in the United States, you could contact Business Credit Insurance Brokers of the United States (BCIB.US)214-991-1950.
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