Euler Hermes recently forecasted an increase of 35% in corporate worldwide insolvencies for 2009, after an increase of more than 27% in 2008. With the continued economic downturn organizations are increasingly inquiring about Trade Credit Insurance, sometimes referred to as Accounts Receivables Insurance. Lenders are quickly beginning to require Trade Credit Insurance placements when using accounts receivables as collateral and organizations are left scrambling to find coverage. And as the market for Trade Credit Insurance constricts, it is more important than ever to make sure you understand what a Trade Credit policy insures and how it works.
As the economic downturn continues and businesses continue to consolidate, an organization’s revenue streams are at increased risk. Furthermore, the constriction of credit availability and organizations’ need to find new revenue streams globally have dramatically increased the demand for Trade Credit Insurance/Accounts Receivables Insurance.
You can an article I wrote on Trade Credit here:
http://www.psfinc.com/press/trade-credit-insurance-an-old-product-renewed
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