Late payments are a global problem for suppliers, especially the smallest ones without enough market power to demand fairer payment terms. But one company is now offering what it claims to be the first-ever accounts receivable insurance for SMEs in the U.S. in an effort to safeguard their businesses against delayed payments.
In an announcement Thursday (Sept. 10), Waldorf Growth Partners announced the launch of a new platform to sell accounts receivable insurance, making it the only insurance program administrator to offer such a product, it said.
“This program provides agencies and wholesalers with a powerful asset: streamlined access to accounts receivable insurance for small and medium-sized B2B companies from a Fortune 100, A-rated insurance carrier,” said Waldorf Growth Partners CEO David Waldorf in a statement.
He added that the insurance offers multiple benefits to suppliers.
“The value for their commercial clients is that the policy insures that businesses get paid when they extend credit to their B2B customers,” Waldorf said. “Beyond that, it can also greatly improve borrowing terms for small and medium-sized businesses, especially if they are exporting goods or services.”
The insurance protects suppliers and wholesalers from both non-payment and late payments from domestic and international corporate buyers, the firm said. Waldorf Growth Partners added that the solution aims to provide suppliers with more robust cash flow management capabilities and encourage them to strike deals overseas, plus give them the leverage to access better borrowing terms, the company said.
Businesses have increased innovation in the accounts receivables space with the goal of reducing the harm suppliers face through late and non-payments. The industry has evolved to offer cloud-based AR management software services that harness Big Data so businesses can more adequately predict and manage changes in payment cycles.