A/R PUT OPTIONS Protect Against Non-Payment and Buyer Default

OVERVIEW

A/R Put Options provide targeted protection against non-payment or bankruptcy of a specific buyer or group of buyers. Instead of insuring your entire portfolio, this solution allows you to hedge specific exposures tied to transactions, contracts, or high-risk credits.

HOW IT WORKS

You select a buyer and coverage amount.
If that buyer fails to pay due to insolvency or default, the policy pays out a pre-agreed percentage of the receivable.

This creates a known recovery floor, allowing you to operate with greater confidence.

KEY BENEFITS

• Protect against large or concentrated exposures 
• Lock in recovery (typically 70–90%) 
• Improve borrowing base and lender confidence 
• Enable deals with higher-risk buyers 
• Flexible, transaction-specific coverage

 IDEAL USE CASES

• Large shipments to a single buyer 
• Distressed or uncertain credit environments 
• Lenders financing receivables 
• Factors seeking downside protection 
• Companies expanding into new or unfamiliar buyers

 WHY PAYAR

We understand both the insurance structure and the underlying deal.

We work with:

• Suppliers 
• Lenders 
• Finance partners 

to structure protection that aligns with the transaction, not just the policy.