A/R Insurance....

[farmaholic]

Hobby, does Export Development Canada(EDC) only insure export sales?

Who do you use for sales within Canada(Me to a Canadian Company)?

What percentage of the sales is the premium?

Could you please list the options.

[hobbyfrmr]

http://marketpowerassurance.ca/

I use this company most often. They work for exporting out of province and out of country. I have shopped around, usually my transactions are "too small" to qualify for the services of others. This works well, it's easy and convenient .

I would suggest first, while negotiating a sale, that it is on the condition that the buyer qualifies for A/R insurance. This means you intend to take out A/R insurance on your transaction with them. They will have to provide financial references and trade references.

This is a very common business practice. If any buyers balk at the idea, keep moving. You may have to explain it to them because it's a different approach than they are used to from farmers. The first time may take some patience for the buyer to collect their thoughts about it and submit the proper information.
Usually, it all works out. If they give resistance or lame excuses, keep shopping. This is not a new and complicated instrument, it is a simple risk management tool that every other export business has been using for decades.
Easy Peezy, feel good sell with confidence type stuff.
You will need documents, the signed contract , the truck/rail bill of lading, your invoice to the buyer with a payment due date, which was initially agreed upon. You must invoice buyer and must have a payment due date.

[farmaholic]

Thanks....