Implementing Trade Credit Policy Spurs Business Growth and Improves Payment Terms
Help protect accounts receivable to avoid a complete loss
Industry: Healthcare Staffing Firm
Locations: 10 U.S. locations
A healthcare staffing firm had many large customers that generated substantial accounts receivables. However, this scenario left the company’s accounts receivables unprotected in the event a customer delayed payment or entered bankruptcy. Either of these scenarios could result in a complete loss to the firm.
Due to an increasing need across the U.S. for healthcare workers, the customer was seeing a high demand for its services from existing and prospective customers, and it desired to meet these demands. Additionally, the firm had many customers requesting higher and longer payment terms.
Brown & Brown implemented a trade credit insurance policy
Brown & Brown built a trade credit insurance policy to insure the firm’s accounts receivables from the risk of a customer submitting a delayed payment or entering bankruptcy. Because of these protections, the customer gained the confidence to extend credit terms to its new customers and it enabled them to expand payment terms for its existing customers.
Protected exposures led to business growth and improved payment terms
Since the trade credit policy insured accounts receivable, one of the firm’s largest uninsured exposures, the customer was able to build its relationships and revenue. This enabled the firm to grow and provide better payment terms to existing and prospective customers.
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