How to Increase Business Line of Credit With Trade Credit Insurance

Put your receivables to work

You are likely all too aware that when things don’t go as planned at various stages in your business cycle, the need for more working capital increases.

The obstacles to improving working capital and financing are increasing as well.

Even before COVID-19, one in five financial leaders that participated in our Risky Business survey said bank financing was a major area of concern. Additionally, 44% of respondents also said that the most frequent result of unpaid invoices was cash flow disruption impacting operations.

One of the best ways to increase your line of credit with bank or other lender is by protecting your receivables with a trade credit insurance policy. 

Improve bank financing

Lenders usually limit what you can borrow against your receivables because of the perceived risk. 

But banks consider receivables insured by trade credit insurance as secured collateral. It often means they will lend more money at a lower interest rate to companies that have trade credit insurance.