Accounts receivables refers to the money owed to your business by your customers. When the amount owed becomes past due, it is referred to as “collections.” Practices around collecting debts owed affect your company's cash flow and can determine your ability to grow and sometimes even whether you are able to stay in business.
If you are looking for another option, you might consider outsourcing to a collections agency. In some models, debt collectors only get paid when they recover an outstanding debt -- but their fees can range from 25% - 45% of the total amount owed.
Trade credit insurance (also known as accounts receivable insurance or business credit insurance) can protect your company from loss and help mitigate risk. Credit insurance reimburses your company if your covered customer cannot pay and has other added benefits as well. Credit insurance protects your most valuable asset: your accounts receivable.
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