Accounts Receivable Insurance
See Accounts Receivable Financing. If you're actually worried about the lions eating your clients before they pay, you can buy accounts receivable insurance, which is, in essence another form of factor. In this case, the system works like term life insurance. The one seeking the insurance pays a fee of, say, 1% of the total amount of money at risk after the accounts receivable insurance company has thoroughly vetted the credit worthiness of the one owing the money, and scoured every term on the contract.
If the account receivable is paid, then the insurance company keeps all of the premium paid to them, i.e., a notional profit margin of 100%. Obviously, those seeking accounts receivable insurance are a self-selected group, likely sniffing risk in the dead-beatism factor of the people owing them money, or they wouldn't have bothered to seek out insurance in the first place. So while the AR insurance industry may seem like a crazy good business to own, things don't always work out. Ask the fat lion for details.
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finance a la shmoop. what does per-capita mean? well there's poor capita yeah this
guy, how would you like to be named capita and then there's per capita which [man sits under a tree]
just means well technically per head. yep comes from Latin like oh so many
things salsa dressing and dancing among others, the word decapitation comes to [dancing feet]
mind. like what happens when those flying human taxi drones get too far to the
left or when King Henry got tired of a wife. so if that happened often it had [helicopter prop]
throw off the per capita calculations. and same deal if we suddenly had a lot
of two-headed people being born like the aliens in men in black and whole bunch
other Hollywood movies. per capita is a useful metric in a bunch of financial
calculations. a common set is GDP or gross domestic product per capita .like
if you have a ton of GDP say ten trillion dollars from your country [100 dollar bill]
whateverstan, if you only have a million people that's a ton of production
productivity. but if you're say China with well over a billion people well
then it's a much lower GDP per capita. the calculations get quoted when talking
about things like cell phone monthly subscriptions, computer ownership or [people crowd around a cell phone]
particularly rollicking house parties. so yeah the notion of per capita is pretty
important but don't stress if you're not an expert yet. it's a nothing to lose
your head over. [man carries head]
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