Trade Risk Coverage - Now Insure Your Receivables Against Bankruptcy, Default & Even Slow Pay

TransGuardian has just launched Trade Risk Coverage (TRC).

Insure your receivables against default, bankruptcy, absconding, legal judgments & slow-pay, up to $5 million per qualified buyer. Selectively cover buyers.

Here's how it works:

Search TransGuardian's Buyer Database to see if the Buyer you want to sell merchandise to is already approved for trade Risk Coverage.

If not, request Trade Risk Approval for your potential Buyer. (This is free and may take overnight to several days, depending on the data available for your potential Buyer.)

Once your Buyer is in the Database, submit the transaction amount you want to cover.

If your Buyer is approved for the desired amount, use the Commercial Insured Trade Agreement (CITA) in place of a commercial invoice or memo.

Type in the transaction value and delivery details and submit the CITA to TransGuardian. Trade Risk Coverage will be bound and confirmed online.

When the Buyer pays you (in full or in part), record the payments in the TRC History.
In case of default or slow payment, call TransGuardian to submit a claim. Claims typically are paid within 60 days.

The premium for TRC is $0.725 per $100, which includes not only receivables insurance, but transit insurance. This means that on $10,000 the premium would be $72.50 to insure both transit and the account receivable...compare the cost of $22-$50 simply to insure shipping with various shipping insurance providers.

TRC is available for terms of 120 days. If the Buyer is approved, you can buy a second and third term of 120 days each, at the same rate of premium.

To understand how this may be worthwhile, consider the following example:

1. You sell $100,000 to your Buyer and pay TRC/shipping insurance through TransGuardian of $725 (remember, you would pay $220 to $500 for shipping insurance alone through other service providers).

2. After 110 days, your Buyer has paid off $70,000. But you're not comfortable leaving the $30,000 balance uninsured. So you buy a second term of TRC for another 120 at a cost of $217.50.

3. After 230 days, your Buyer has paid off an additional $20,000, leaving a balance of $10,000. You feel he probably will pay, but it bothers you that he's taken all this time to pay off the whole balance, so to be safe, you secure a final term of TRC for another 120 at a cost of $72.50.

Before each term of TRC expires, you will receive multiple emails advising you that the term is about to expire and that you should consider filing a claim before the term is up.

TransGuardian can also assist with slow-pay, both for TRC transactions and for old outstanding receivables not covered by TRC.