For Bankers

Account receivables typically comprise up to 40% of a Canadian company’s total assets – often dominating the balance sheet. Yet less than 10,000 companies among the country’s 1.1 million employer businesses currently employ receivables insurance products.

For bankers, this under-insured state introduces undue risk on working capital loans, inhibits the amount that can be loaned, and also forces higher interest rates on business clients – artificially restricting sales growth. 

There is also a misunderstanding among CEOs, CFOs, Credit Managers and Enterprise Risk Managers about the role of receivables insurance, with many believing it can only be used to protect export sales. This is untrue, and in an economic climate that is prone to unforeseen events, unwise as well. 

In much the same way mortgage insurance is designed to protect banks in the event of a foreclosure, receivables insurance enhances security on client loans – in the event that your client’s buyers – domestic or foreign – are unable to fulfill their invoice payment obligations. Such unforeseen trade disruptions can include a buyer’s insolvency, protracted default (failure to meet obligations due to inadequate cash flow), or political disruptions that lead to a loss on current receivables. 

For articles highlighting the business benefits of receivables insurance, visit

To become a member of the Receivables Insurance Association of Canada, click here.


Click here for general questions about receivables insurance.

All of the Insurer members of RIAC are members of the International Credit Insurance and Surety Association - ICISA