Foreign accounts receivable (A/R), which in many cases accounts for 20 percent or more of a company’s outstanding A/R, is generally treated as ineligible collateral. It is treated as an ineligible for a number of reasons depending on the jurisdiction. For example, it is typically challenging to enforce and collect payment if the account debtor is located outside of the United States.

By leveraging trade credit insurance to mitigate the enforcement risk associated with foreign A/R, banks can enable its client base to include insured foreign A/R as eligible collateral. As a result, collateral availability will increase, allowing the bank to offer larger loan facilities to meet their client’s needs.

Impello Global’s experience implementing insured receivable finance programs is unmatched in the industry. We work hand in hand with our clients to write, implement, and improve internal credit policies along with ongoing compliance and monitoring programs. In addition to making sure our clients internal policies and procedures are impeccable, we work closely with our client’s borrowers to make sure they also have proper procedures in place to comply with their policy requirements.