Accounts Receivable Insurance
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. |
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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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