Put Options
Accounts Receivable PUTs are mostly used to mitigate non-payment risk on specific accounts. PUTs are often used and are available on higher risk accounts where traditional risk mitigates are not. Often confused with Credit Default Swaps, PUTs provide a guaranteed amount for the contract period vs variable amounts.
PUTs are usually used to cover public companies or companies with public debt domestically. They allow companies to continue to trade where many other suppliers have exited. Often PUTs are used in conjunction with other products such as Credit Insurance to fill gaps and provide coverage where it may be lacking.
Normally 100% coverage and non-cancelable, PUTs can be a very attractive tool to protect your business.
PUT Calculator - Make it Make $ense
By completing the shaded boxes below you will get a snapshot of gross profit comparisons with and without the 100% protection of a PUT.
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