Investment and Business Expansion Overseas - investing or establishing a business overseas is often the natural consequence of a growing company. While you may know your foreign customer well and have a good payment history with them, events outside of their control could prevent them from paying. Businesses operating overseas often need to make significant investments in foreign countries. These investments must sometimes be made in unsafe and unstable countries with risks of arbitrary government actions, war, or civil uprising.
Services
Since 1932 J. Maxime Roy, Inc. has helped clients manage commercial risk in order to grow their business. Our goal is to help our clients reduce risks associated with exporting and operating internationally by providing specialized insurance policies, including export credit and political risk insurance, and international bonding.
Extending credit to foreign customers is often required to be able to compete in foreign markets. However, this exposes exporters to the risk of non-payment. Political risks that can cause foreign customers to default include currency inconvertibility (foreign buyers' inability to obtain U.S. dollars), currency devaluation, war, revolution, cancellation of import/export licenses, foreign government action preventing the import of products, and diversion of voyage.
Financial turmoil in the U.S. and problems in other countries that impact the U.S. make it hard to predict conditions that could lead to your U.S. customers defaulting on payment obligations. Increased sales by allowing you to safely extend credit or continue to extend credit to customers. Increased access to bank financing and improved financing terms.
An Accounts Receivable Put Option is a credit risk management tool that provides protection against the risk of bankruptcy on the covered company. A/R put options are not insurance and are issued by highly rated investment banks. Issued to cover large, publicly traded companies (or large private companies with audited financial statements).
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