Operating a successful business in the produce industry is fraught with risk. Even the healthiest companies can be suddenly and severely impacted by unexpected price swings, leaving suppliers exposed to considerable payment risks when customers are slow to pay or even file bankruptcy in the most extreme cases. “Our industry brings daily changes and challenges, which makes it hard for us to know if a customer will collapse overnight,” said Cathy Jimenez, Del Campo’s Credit Manager.

Rather than accept the seeming inevitability of at least some customer payment defaults, Del Campo Supreme, Inc., a Nogales, Ariz.-based distributor of high-quality tomatoes and peppers, chose to implement a seamless preemptive strategy to help mitigate its risk and protect its industry-leading market share.

The results of this approach speak for themselves. Del Campo has not experienced a single credit loss in more than a decade. “Our credit insurance policy not only offers us security in the event of non-payment, but also provides access to the robust knowledge we need to make informed decisions about offering credit to certain companies,” said Jimenez. And with accounts receivable secured with Allianz Trade’ AA S&P rating, financial institutions are more willing to provide Del Campo with more credit options.

Del Campo can now focus on growing its business without increasing its risk while also solidifying its brand position as the leading food supplier for a healthy and wholesome lifestyle. “If Allianz Trade underwrites the risk when we request a limit, then we can get on with growing our business,” said Jimenez. “Even though we have tight control of our accounts receivable portfolio, we always have that reassurance from Allianz Trade, just in case.”

This success has not gone unnoticed in the industry. “Local distributors call us inquiring about credit insurance,” said Jimenez. “Any cost is easily offset by the benefits and what you could lose if a customer went bankrupt or just failed to pay. I strongly recommend it.”