Products/ Services
The financial tool that has benefited large corporations
for decades is now available for small and medium-sized businesses.
Accounts Receivable Insurance (also called Trade Credit Insurance) protects the single, largest item on a business’ balance sheet. It provides an assurance of funds which benefits a business looking to secure a commercial loan using its accounts receivable as collateral. And it can help a business expand its distribution outside of the US by insuring exports and Accounts Receivable against certain delays due to shipping.
FinSurance is the first Accounts Receivable Insurance program designed specifically for US small to mid-sized businesses and features an end-to-end digital underwriting platform that simplifies Accounts Receivable insurance for licensed brokers and their clients.
Only 1 of 1,000 insurance agencies have a dedicated Accounts Receivable insurance specialist. Most of these agencies focus on the largest corporations due to account size requirements of their firms, and the complexity of their coverage. FinSurance now enables interested licensed brokers who have never before been able to access to a leading platform with premiums starting as low as $1,250 per year.
Small Business
If you handle commercial insurance or own a small business, see how FinSurance can benefit your business.
Lenders
If you handle the insurance for commercial lenders involved in asset-based lending, FinSurance will benefit their business.
Brokers
FinSurance is available exclusively through licensed insurance brokers, but you must be registered on our website.
FinSurance works through brokers on an Open Market basis with Minimum Accounts Receivable Insurance Premiums as low as $1,250 per annum.
We simply require brokers to register for our producer portal prior to binding an account.
Summary Eligibility for Applicants
Applicants must be US based (they can be a sub of a foreign company);
A minimum of $100,000 in insured sales and a maximum of $100,000,000 in insured sales. The application allows you to submit Domestic and Export Sales separately and to strip out Personal and Government buyer sales which are not eligible for cover under this program.
Eligible Classes
FinSurance is designed for business-to-business (B2B) companies, primarily U.S. Small and Medium Enterprises (SME) with annual revenues starting as low as $100,000 and who operate on open account terms.
NAICS Code Eligibility List
| 31-33 | Manufacturing |
| 42 | Wholesale Trade |
| 48-49 | Transportation and Warehousing |
|---|---|
| 48412 | General Freight Trucking, Long-Distance |
| 48423 | Specialized Freight (except Used Goods) Trucking, Long-Distance |
| 484121 | General Freight Trucking, Long-Distance, Truckload |
| 484230 | Specialized Freight (except Used Goods) Trucking, Long-Distance |
| 52 | Finance and Insurance * Only Eligible as Loss Payees |
|---|---|
| 52211-522110 | Commercial Banking |
| 522293 | International Trade Financing |
| 54 | Professional, Scientific and Technical Services |
|---|---|
| 5418 | Advertising, PR & Related (5418 – 541890) |
| 5418 | Advertising, PR & Related (5418 – 541890) |
| 56 | Administrative and Support and Waste Management and Remediation Services |
|---|---|
| 5613 | Employment Services |
| 56132 | Temporary Help Services |
| 56131 | Employment Placement Agencies and Executive Search Services |
| 561311 | Employment Placement Agencies |
| 561312 | Executive Search Services |
| 561320 | Temporary Help Services |
Covered Risks
FinSurance’s Accounts Receivable Insurance protects two primary areas of risk:
Commercial Risks including:
Insolvency of the insured’s customer(s)
Chapter 7, 11 or equivalent in country of domicile
Protracted Default
Continued delinquency/inability to pay
Political Risks including:
Currency Inconvertibility
Exchange Transfer Risk
Import/Export Embargo
License Cancelation
Our Accounts Receivable Policy
FinSurance offers two types of Trade Credit Insurance: Single Buyer and Transactional (Single Invoice) coverages.
Single Buyer
If most of your transactions are with one customer, you can select a trade credit insurance policy that insures against potential default from just that customer.
Transactional
(Single Invoice)
This form of trade credit insurance protects against non-payment on a transaction-by-transaction (invoice) basis and is best for companies with few sales or only one customer.
Coming Soon:
Whole Turnover
Key Accounts
FAQs
Here are the answers to the most frequently asked questions about FinSurance and Accounts Receivable Insurance.
FAQ 1
Coverage limits are capped at a maximum of ninety percent (90%) of the approved customer credit limit and determined by factors including prior fiscal year’s sales and credit worthiness of customers.
FAQ 2
There are deductible, non-qualifying loss limits, and discretionary limit on most policies.
FAQ 3
FinSurance policies and scheduled Buyer Limits are non-cancelable for the term of the policy. Coverage amounts cannot be canceled or reduced during the policy term.
FAQ 4
Premiums can be paid by ACH or With Credit Card up front or under installments and are tax deductible.
FAQ 5
FinSurance’s Accounts Receivable Insurance policies are insured by an “A” rated class XV insurance carrier.
Accounts Receivable Financing for Asset Based Loans (ABL)
ABL can provide borrowers with a range of benefits. These include increasing borrowing power and reduced covenants associated with other forms of funding. Insuring Accounts Receivable and adding the ABL lender to the policy as loss payee can increase borrowing power further. Use our calculator to see the potential impact Accounts Receivable Insurance can have on the ability to borrow against Accounts Receivable, so companies may increase working capital, to generate new sales and profit.
*Disclaimer:
The estimated trade credit insurance premium expenditure listed in this field is illustrative only and intended solely as an example for purposes of demonstrating potential ROE when purchasing trade credit insurance. Each insured’s actual premium will be communicated in the quote prepared after receipt and evaluation of all requested underwriting information.
| Projected Sales Revenue Next 12 Months |
| Gross Profit Margin |
| Projected Profit |
| Cost of Goods Sold (COGS) |
| Return on COGS |
| Projected High Accounts Receivable Balance over next 12 months |
| Projected Ineligible Receivables for the next 12 months (Typically Exports and/or Excess Concentration) |
| Projected Eligible Accounts Receivable as collateral for Asset Based Lending (ABL) |
| Advance Rate: Typically, max % ABL advance against Eligible Receivables |
| Potential With Accounts Receivable Insurance |
| Potential ABL Limit |
| Incremental Capital (Increased credit from insuring Accounts Receivable) |
| Projected New Sales from Increased Capital (Enter what you could achieve with incremental funds) |
| New Gross Profit from Increased Capital |
| * Estimated Cost of Accounts Receivable Insurance |
| New Gross Profit After Accounts Receivable Insurance (ARI) Expense |
| New Net Profit After ARI Expense (Does not include Interest on increased Capital) |
| Return on ARI Premium (Does not include Interest on increased Capital) |
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