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Credit Insurance |
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Credit insurance Credit Insurance An insurance policy protecting a company in the event that it does not collect an unusually large amount of its accounts receivable. A company's accounts receivable represent what it is owed on its credit sales. Every company that makes credit sales takes the risk that its customers will not or cannot pay what they owe. Credit insurance is one way to reduce this risk. See also: Factoring. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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Credit insurance has been hard to sell in recent years, and insurers see little prospect for future growth. When your export business requires you to extend credit overseas, you can protect your company's foreign receivables against nonpayment losses with an export credit insurance policy. TC Memo 1997-499, that commissions paid by automobile dealerships to employees for selling credit insurance were currently deductible under Sec. |
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