A recent survey reveals 50% of senior finance leaders have made optimizing working capital a top 2022 priority. One dark cloud in that optimization is bad debt risk. Every company has the bandwidth to weather some receivables risk. Even so, nearly 54% of these leaders are forced to increase bad debt reserves, especially if vulnerable to a key account loss.
One effective way to mitigate receivables risk is with trade credit insurance. Among the reasons this insurance is gaining CFO acceptance is the way it helps smooth cash flow and helps remove customer bad debt concern. This playbook looks behind the scenes to reveal a portrait of insurance coverage that:
- Provides a structure for credit decision-making that frees up managers for other priorities
- Minimizes the risk of foreign payment practices with exclusive insurer insight and counsel
- Offers increased transparency into cash flow and working capital management