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MITIGATING RISKS
You can do a lot to mitigate risks on open account
transactions even with new customers, by getting to know the companies
you do business with.
Get trade references, and if the sales amounts
are large, an international credit report.For more on this topic, download
our white paper (click here) on trade finance options.
Credit insurance can help mitigate risks in several ways:
Underwriting can reveal the credit-worthiness of your customer,
providing a structure for credit decisions.
In the event that unforeseen default occurs, you
can be covered for the loss, often at 90%. From some insurers,
up to 100% cover is available.
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