There are several methods for managing the credit risk of commercial accounts receivable, which include credit insurance, credit protection, non-recourse factoring and selling the accounts receivable outright.

Credit Insurance: The extent to which your company utilizes credit insurance to manage your accounts receivable portfolio will depend on: (1) the credit profile of your customers, (2) the concentration of your largest customers relative to your total sales, (3) your company's equity capital cushion and (4) your accounts receivable management resources.

Non-recourse Factoring: The attractiveness of non-recourse factoring is that your firm shares the risk with the Factor, possibly benefiting relative to selling the accounts receivable outright, yet limiting your company's maximum loss exposure. The downside is that your maximum exposure (that is, the amount of the reserve fund) most likely is more than the discount from selling the accounts receivable outright. If the client pays the account receivable within a certain amount of time, the remaining amount of the reserve fund, after the Factor's fee is paid, will be released to your company.

Selling Large Balance Accounts Receivable: Companies that have the opportunity to sell their products in quantities of at least $500,000 can consider the sale of individual accounts receivable. This is particularly attractive when your prospective customer is in Chapter 11 or otherwise not an acceptable credit risk, permitting your company to sell products to a company that otherwise would not be acceptable.

We can provide commercial accounts receivable credit risk management for a wide variety of companies including:

• distributors accounts receivable
• industrial accounts receivable
• medical accounts receivable
• manufactuers accounts receivable and
• service firms accounts receivable.