Midsize manufacturers are constantly seeking ways to differentiate themselves from larger competitors. Most companies are aware of the opportunities available in global markets but struggle to get started. Why? They’re often worried that they cannot offer favorable credit terms needed to win business without accepting a great deal of risk. Here, we explore three reasons why trade credit insurance is a critical component of any global growth plan.
1. Global Trade Increases Risk of Nonpayment
44% of respondents said getting paid was their greatest challenge when selling goods and services abroad.
2. Customer Creditworthiness is Tenuous
28% The amount that business bankruptcies increased during the first 3 quarters of 2016 compared to the previous year
3. Credit Insurance is Critical to Remain Competitive
80% of global trade is supported by a form of trade finance or credit insurance covering transactions on open account term.
HOW CAN TRADE CREDIT PROTECTION HELP?
1. Protection against nonpayments
arising from bankruptcy, defaults and, in some cases, political risks.
2. Coverage of short-term invoicing periods
between 60 and 180 days.
3. Credit risk checks
between 60 and 180 days.
4. Collection of overdue payments
Visit Coface at www.coface-usa.com to learn more about how trade credit insurance can help your business achieve its growth goals.
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