You need to extend competitive terms to grow your business, but what happens if you don't get paid? Your open-account customers could file bankruptcy, run into cash flow problems, face adverse liability judgments, lack sufficient insurance protection, perpetrate balance sheet fraud, or fail to pay you for a variety of other reasons. In addition, foreign buyers might suffer from currency devaluations, detrimental government actions, or unforeseen political events. You can protect your U.S. and international sales against non-payment risks with a global receivables insurance policy.

If you want to cover your company's foreign receivables, without insuring your U.S. domestic sales, apply for Export Credit Insurance. If you want to cover your company's U.S. receivables, without insuring your export sales, apply for Domestic Credit Insurance. If you want to cover all of your company's sales worldwide, apply for global (export + domestic) receivable insurance. Global policies may offer lower blended premium rates, smaller aggregate deductibles, higher discretionary credit limits, and more aggressive buyer underwriting than you might get by purchasing separate export and domestic policies.

Receivables insurance protects your sales against commercial and/or political risks which could result in non-payment of your invoices. Commercial risks take the form of buyer insolvencies (e.g. bankruptcy) or protracted defaults (slow payment). These problems could occur for many reasons, such as fluctuations in demand, natural disasters, or general economic conditions in your customer's country. Political risks include war, riots, and revolution, as well as currency inconvertibility, expropriation, and changes in import or export regulations.

All of your receivables can be insured under one multiple-buyer policy, or in some cases you can purchase key-buyer coverage. Sales of all types of products may be covered, regardless of content or where the products are manufactured. Any kind of company can apply for accounts receivable insurance, including manufacturers, distributors, dealers, etc. Your customers don't need to be huge corporations or government agencies; any buyers can be considered as long as they are creditworthy, as determined by financial information, trade references, or in some cases simply your company's own ledger experience.

Premium rates are based on the terms you extend, the spread of your buyer and country risks, and your previous credit and collections experience. The cost is low, typically a small fraction of one percent based on sales volume . . . in most cases considerably less than the fees charged for letters of credit.

Rates may be calculated as a function of your shipment volume, country/buyer credit limits, or outstanding receivables. Premiums are payable monthly, quarterly, or annually.

Whether or not you pass this incremental expense on to your customers, the price of the coverage is insignificant compared to the additional business you can win by extending competitive credit terms while protecting your receivables against non-payment losses.

All receivables insurance policies sold by Meridian are fully backed by either the U.S. government or top-rated commercial insurance companies.

Specializing in this kind of coverage, Meridian offers a complete selection of policies from every insurance company and government agency that underwrites accounts receivable insurance.

Strong underwriting relationships enable Meridian to quote the most competitive premium rates in the market, with no added processing charges or broker fees.

By monitoring how you are using your policy, Meridian can help you keep your receivables insurance coverage up-to-date as your domestic and export business grows.

Meridian can supply credit reports on your customers, offer training in credit evaluation, assist with policy compliance and administration, and provide ongoing support for your sales, credit, and finance departments.

INCREASE YOUR PROFITS: Grow your sales by making it more economical for your customers to purchase larger quantities. Shipping larger orders helps you negotiate better pricing from your suppliers, make longer manufacturing runs, and transfer inventory carrying costs.

PENETRATE YOUR TARGET MARKETS: Open new markets which your company might otherwise perceive as too risky for extending credit terms. The opportunity to establish market share in emerging economies and industries has never been greater.

GET MORE FROM YOUR DISTRIBUTORS: Negotiate stronger representation by offering competitive terms to your distributors. Provide incentives to keep more of your products in the supply chain, increasing your market share and local brand recognition.

ENHANCE YOUR BORROWING CAPACITY: Obtain more favorable financing by including more of your receivables in your borrowing base. Credit insurance makes your receivables more attractive to your bank, especially if your A/R portfolio includes foreign receivables, concentrations of risk, cross-aged receivables, or sales into industries outside your bank's comfort zone. You can assign policy proceeds to the lender of your choice.

STRENGTHEN YOUR BALANCE SHEET: Keep your company's financial position secure, despite exposure to unforeseen events, concentrations of credit risks, and changing market conditions. Insuring your receivables may also enable you to reduce your bad debt reserves. Credit insurance can help facilitate the "true sale" of your domestic and foreign receivables per FASB 125, as well as supporting asset securitization.