Single buyer credit protection is an effective way to cover your large credit exposure to a public or even privately-held company, particularly if that customer is in financial distress. This type of credit risk mitigation strategy has become commonplace in the last decade, utilized regularly by both large and mid sized companies alike.

There are 3 basic types of contracts that provide single buyer coverage for accounts receivable. Do not be daunted by the various options. Know that we will walk you through the process, every step of the way.

• Accounts Receivable Put Contract - You pay a fee which gives you the option of selling your receivable on a given customer to a known counterparty within a certain timeframe at an established price, subject to a pre-determined event trigger (i.e. insolvency, non-payment, etc.).
• Credit Default Swap - This capital markets product offers the buyer of the swap credit protection, whereas the swap seller guarantees the credit worthiness of the company.
• Single Customer Receivables Purchase Agreement - Institutions specializing in receivables purchases provide you with a facility enabling you to sell your receivables on an ongoing or spot basis in the normal course of business.

Whatever your needs regarding specialized credit protection, Smyth Trade Credit will find the right solution for you. Note: our fees are normally paid by the party providing the credit protection, not you.