When growing a business, many entrepreneurs and larger companies are often driven to by increasing sales, but having tools to protect your company from non-payment from your customers is also important.
Credit Insurance is a key resource to assisting your company in reducing its risk in sales. Credit insurance is an insurance policy typically taken to cover a single invoice and/or a group of invoices that will repay the insurer upon a loss due to financial stress and/or bankruptcy. Credit insurance at a bank or factoring company must have a real insurance company underwriting the policy.
1st PMF Bancorp has a AAA Insurance Company underwriting all its insured invoices. Our process has a third party adjuster and claims department to insure professional service without any conflicts. Many banks and/or factoring companies will provide a substitute called “an Invoice Guarantee”… this is not insurance and is not regulated by any third party. As a result, your company will be subjected to whatever determination is made to repay you without a proper adjuster and/or claim process through a true 3rd party insurer. Make sure to ask your financial institution the hard questions about the claims procedure in case there is a default so there is no confusion.
Feel free to call 1st PMF Bancorp at 877-763-2286 and our representatives will be happy to discuss the details and the costs for these services.