Protecting Your Business, and Your Bank Account, in Case Clients Don’t Pay (Published 2016)

Once identity is solved, credit risk becomes easier. You can’t commit fraud or default on your debt just by wriggling free into the ether; your credit history is immutable and follows you everywhere. In a fully transparent world — even if pseudonymous — willingness to pay becomes a given, and so the analysis can focus on ability to pay.

I’m a very trusting person by nature, and I tend to believe people more readily than is sometimes wise. In this business, you must trust people to a degree, but it is crucial you make sure what you’re buying is not only legitimate, but that the account debtors have received the goods or services, intend to pay without any issues or offsets, and wil... See more

The company takes 25% of insurance premium revenue for administrative costs and potential profits. The other 75% is used to fund customer claims, buy reinsurance (laying off some risk) and pay certain taxes and fees, with anything left going to charities that customers choose. The social-compact pitch: Lemonade can’t profit from denying legit claim... See more