PUT Options
PUT Options
PUT credit protection to save your business
VoloFin USA can obtain quotes for both pre-bankruptcy and in-bankruptcy PUT protection for your accounts receivable. We understand that you may need to continue to do business with certain customers that are too risk adverse for traditional Trade Credit Insurance or bank loans.
Vendor receivable PUT option
A vendor receivable PUT Option provides companies protection on outstanding accounts receivable. The PUT option grants a vendor the ability to:
Key characteristics of a vendor receivable PUT option
Protection is available across a wide range of public and private companies.
Length of a PUT option can be customized and generally ranges from 3 – 12 months.
Contracts are tailored to meet a vendor’s needs and specific circumstances.
Provide protection that is often not found in the general insurance market. Can be executed for single customer names, for custom contract lengths and with no deductible.
Can provide vendors with immediate protection across outstanding accounts receivable.
Allows vendors to continue to do business with existing customers during periods of market uncertainty/disruption while eliminating payment risk from the customer due to bankruptcy.
Vendors can use PUT Options to expand their business. PUTs are commonly used to support factoring and bank facility arrangements.
Pricing is not dependent on the credit quality of the vendor but rather on the credit quality of the customer.
Easy to execute and no detailed documentation or diligence process.
Streamlined vendor requirements ensure timely payment to vendor in the event of bankruptcy.
The PUT Option can be structured as non-cancellable by our PUT partner (unlike insurance, which often includes cancellation events).
PUT options are backed by well-capitalized vehicles, providing additional comfort to a vendor.
Key characteristics of a vendor receivable PUT option
Protection is available across a wide range of public and private companies.
Length of a PUT option can be customized, and generally ranges from 3 – 12 months.
Contracts are tailored to meet a vendor’s needs and specific circumstances.
Provide protection that is often not found in the general insurance market: can be executed for single customer names, for custom contract lengths and with no deductible.
Can provide vendors with immediate protection across outstanding accounts receivable.
Allows vendors to continue to do business with existing customers during periods of market uncertainty/disruption while eliminating payment risk from the customer due to bankruptcy.
Vendors can use PUT options to expand their business. PUTs are commonly used to support factoring and bank facility arrangements.
Pricing is not dependent on the credit quality of the Vendor but rather on the credit quality of the customer.
Easy to execute and no detailed documentation or diligence process.
Streamlined vendor requirements ensure timely payment to vendor in the event of bankruptcy.
The PUT option can be structured as non-cancellable by our PUT partner (unlike insurance, which often includes cancellation events).
PUT options are backed by well-capitalized vehicles, providing additional comfort to a vendorour.
We offer a range of PUT option to suit your industry’s unique needs
As an agro commodity exporter our business is very seasonal. Our current banking lines can be insufficient for growth during this period. VoloFin helped us mitigate the working capital gap.
Chillies Exporter
We deal with multiple buyers from across the globe, VoloFin's intuitive portal made the task of adding buyers and sending new funding requests very easy and quick. We can now avail working capital with just a few clicks.
Garment Exporter
Accelerate your order finances today
Singapore, 17th March 2022 - VoloFin, a blockchain-powered fintech platform with operations in Singapore, USA, and India announces strategic partnership with US-based alternative asset management group, Highmore.
Over the last few years due to the global pandemic, businesses and economies across the world have suffered setbacks, some bounced back stronger than expected while some continue to reel under the pressure of the challenges that COVID 19 brought.
Singapore, 17th March 2022 - VoloFin, a blockchain-powered fintech platform with operations in Singapore, USA, and India announces strategic partnership with US-based alternative asset management group, Highmore.
Frequently asked questions
Our team is standing by and ready to help. Get live support from our team by phone, chat, or email, or reference the help center anytime.
A Credit PUT is a contract between two parties to hedge against a bad debt loss on a distressed customer (the debtor) due to bankruptcy, insolvency, or the equivalent.
A PUT contract can be utilized when traditional credit insurance or non-recourse factoring coverage is unavailable.
No, it is a financial contract between the underwriting party who is willing to take premium from a vendor to hedge against a loss from a buyer, i.e., customer or debtor.
A credit PUT can be purchased for one customer or a number of customers.
The range of PUT contracts usually begin at 3 months and can go up to 24 months. Unlike trade credit insurance, the client can choose the length of the contract within this range.
Only when the customer (debtor) files in court for bankruptcy, insolvency or the equivalent.
Fast, flexible working capital solutions to
Empower your business growth
Accelerate cash flow. Free-up liquidity trap. Instant funds for exporters
We started working with VoloFin in 2021, VoloFin helped us tackle our liquidity woes by funding our export receivables. This helped us expand even during the pandemic.
Engineering Goods Exporter From Chennai