Credit insurance can eliminate this problem. Credit insurance also can make it easier for a firm to borrow money from its own bank. With the insurance in place, a bank can give a larger amount of credit for the value of the firm's accounts receivable. The costs of credit investigations and collections are reduced by the use of credit insurance. Sales can be increased by offering larger shipments or longer terms as a result of having credit insurance.
Market Listed below is one credit insurance market.
The firm is a joint venture with Fidelity and Deposit Insurance Company which, in turn, is owned by Zurich Group.