Sales to high-risk customers

Accounts Receivable Put Options fill credit insurance gaps and protect your business if a customer files for bankruptcy. This type of product has been around for over a decade and is used to allow sales to high-risk customers after credit insurance has been cancelled.

The contracts are provided by a bank or hedge fund. They can protect against publicly traded customers or customers with publicly traded debt and very negative financial results.

Protect the full value of the receivable outstanding balance. There is no co-insurance and deductible.

The protection is triggered by your customer filing for bankruptcy, there is no protection for late payment.

Contract terms can be for only 3 months or many years. Note that the insolvency must occur during the contract term.

Once the contract has been finalized, it cannot be cancelled. It maintains valid, regardless of your customer’s financial status. The price is guaranteed for the contract duration.