Accounts
Receivable
Put Options.
Support sales to high risk customers when trade credit cannot
Accounts Receivable Put Options protect if a customer files for bankruptcy. The market has been around for over a decade and is used to support sales to high-risk customers after credit insurance has been cancelled.
The contracts are provided by a bank or hedge fund. They are available to protect customers that are publicly traded or with publicly traded debt (bonds).
Key Features
100% Coverage
- Protect the full value of the outstanding receivable balance. There is no co-insurance and deductible.
Customer Insolvency
- The protection is triggered by your customer filing for bankruptcy, there is no protection for late payment.
Flexible Contract Term
- Contract terms can be as short as 3 months to as long as multi-years. Note that the insolvency must occur during the contract term.
No Cancellation
- Once the contract has been finalized, it cannot be cancelled. It maintains valid, regardless of your customer’s financial status. The price is guaranteed up-front.
