Accounts Receivable Insurance

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Dictionary Says

Definition of 'Accounts Receivable Insurance'

A form of credit insurance offered by commercial insurers to businesses. Accounts receivable insurance can take the form of multi-buyer insurance (a pool of receivables) or key buyer insurance.
Investopedia Says

Investopedia explains 'Accounts Receivable Insurance'

Accounts receivable insurance can be particularly useful for new or rapidly growing businesses that cannot afford to do credit checks. For a relatively low fee, accounts receivable insurance protects a company against loss on receivables, including default, bankruptcy or simply slow payment.

This insurance can also protect a company that is unable to collect receivables due to loss of the underlying records (for example, in a fire).

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'Accounts Receivable Insurance'

  • What Is A Cash Flow Statement?

    http://www.investopedia.com/articles/04/033104.asp
    ... If accounts receivable increase from one accounting period ... credit, an increase in
    accounts payable would ... taxes payable, salaries payable and prepaid insurance. ...

  • What happens if a company doesn't think it will collect on some of ...

    http://www.investopedia.com/ask/answers/06/allowancefordoubtfulaccounts.asp
    ... Active Trading; Forex; Personal Finance; Real Estate; Retirement; Insurance; ETFs;
    Options ... The accounts receivable account, or receivables for short, is created ...

  • Operating Performance Ratios: Operating Cycle | Investopedia

    http://www.investopedia.com/university/ratios/operating-performance/ratio3.asp
    ... Dividing the average accounts receivable figure by the net sales per day figure. ...
    (2) average accounts receivable, 524.8 + 524.2 = 1,049 รท 2 = 524.5. ...

  • 7 Unconventional Ways Businesses Can Borrow Money

    http://www.investopedia.com/articles/pf/09/seven-ways-borrow-money.asp
    ... no". 1. Factoring Factoring (also known as accounts receivable financing) is
    one of the oldest methods of in-house financing. Factoring ...

  • Liquidity Measurement Ratios: Cash Conversion Cycle | Investopedia

    http://www.investopedia.com/university/ratios/liquidity-measurement/ratio4.asp
    ... gives a measure of the number of days it takes for the company's inventory to turn
    over, ie, to be converted to sales, either as cash or accounts receivable. ...

  • Dynamic Current Ratio: What It Is And How To Use It

    http://www.investopedia.com/articles/02/090302.asp
    ... Current Ratio=, Inventory + Accounts Receivable + Cash Equivalents + Cash ... Quick Ratio =,
    Accounts Receivable + Cash Equivalents + Cash Current Liabilities. ...

  • Cash Flow On Steroids: Why Companies Cheat

    http://www.investopedia.com/articles/basics/05/062405.asp
    ... (For more on analyzing these, see How To Read Footnotes.) Selling Accounts Receivable
    Another way a company might increase operating cash flow is by selling ...

  • Earnings Quality: Analyzing Specific Accrual Accounts ...

    http://www.investopedia.com/university/accounting-earnings-quality/earnings7.asp
    ... 4. This table listed several accounting items, such as accounts receivable, inventory
    and PP&E, where management has a high degree of accounting flexibility. ...

  • Measuring Company Efficiency

    http://www.investopedia.com/articles/stocks/05/04405.asp
    ... receivable stood at $2.11 billion, and in 2002, it was $2 billion, yielding an average
    accounts receivable figure of ... Investing In Health Insurance Companies. ...

  • Liquidity Measurement Ratios: Quick Ratio | Investopedia

    http://www.investopedia.com/university/ratios/liquidity-measurement/ratio2.asp
    ... While considered more stringent than the current ratio, the quick ratio, because
    of its accounts receivable component, suffers from the same deficiencies as ...

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