Absolutely! You can get credit insurance coverage tailored to a single buyer. Here’s what you need to know:
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Single-Buyer Policies: These policies are designed specifically for businesses concerned about the risk of non-payment from a particular, often large or strategically important customer. They offer more targeted protection.
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Reasons to Consider Single-Buyer Coverage:
- Large Exposure:Â If a single customer accounts for a significant portion of your revenue.
- New Customer:Â You’re taking on a new customer with an unestablished credit history.
- Risky Customer:Â The customer operates in a high-risk industry or has a questionable financial background.
- Aggressive Payment Terms:Â When you’ve extended generous payment terms to win a crucial customer but want to mitigate the increased risk.
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Benefits of Single-Buyer Coverage
- Focused Risk Management:Â You target your insurance investment and resources directly at the specific buyer of concern.
- Tailored Terms:Â The policy terms can be customized to address the unique risks associated with that buyer.
- Flexibility:Â This option can often be secured alongside or independently of a broader whole-portfolio policy.
Important Notes:
- Availability:Â Single-buyer coverage is available from both government entities like EXIM Bank (https://www.exim.gov) and private insurers.
- Assessment:Â The insurer will still thoroughly assess the buyer, and the terms and premiums will reflect their perceived risk profile.
In addition to single-buyer policies, many credit insurers also offer:
- Whole Portfolio Policies:Â These cover your entire sales portfolio or a significant portion, offering broader protection.
- Selective Coverage Policies:Â Where you choose to insure specific accounts based on your risk assessment.
The best option for you depends on your specific risk profile, business needs, and the availability of suitable insurance products.