MATCH WITH BEST ANSWER Accounts Receivable Insurance Having a client that does not pay can leave you in a difficult situation. You have to pay your employees and suppliers, and are essentially stuck...

Accounts Receivable Insurance

Having a client that does not pay can leave you in a difficult situation. You have to pay your employees and suppliers, and are essentially stuck covering the costs of goods sold, without the corresponding revenue. Accounts receivable insurance, also known as credit insurance, can help protect you from this risk.

1.   ____ A customer’s bankruptcy or default on payment.

A.  Your customer made an order, but now the shipment is sitting at the dock unclaimed. This could result not only in losing the money owed, but also in storage expenses or getting the shipment resold or returned.

2.   ____ A customer’s refusal to accept the goods as contracted

B.  Trying to get a reluctant or insolvent customer to pay can be a time-consuming and expensive experience.

3.   ____ Contract cancellation.

C.  You have work in progress to fulfill a contract for a customer, but the customer cancels the contract, leaving you with customized goods that cannot be easily re-sold.