Question 1

Which industries are covered?

Accepted Answer

Our selected debtor route means that we never decline any industries or sectors. We believe that there are good risks in all sectors.

Question 2

Which transactions can be covered?

Accepted Answer

Any debtor resulting from goods delivered or services rendered is eligible for our product. We don’t cover leases of property or assets, or any money lending transactions though.

Question 3

How are my premiums calculated?

Accepted Answer

Premiums are calculated either on the credit limits we’ve approved or on a turnover or outstanding balance basis, depending on the structure of the policy. The rate is based on the outcome of the assessment of the underlying debtor or on a portfolio rating as you choose.

Question 4

How long does it take to get a limit insured?

Accepted Answer

Once you give us all the information we need, we’ll take four working days to perform a comprehensive credit review on the debtor and provide a premium rate.

Question 5

Are there a minimum number of days per credit limit?

Accepted Answer

A credit limit is required to be in place for a minimum of 120 days. While you may increase a limit at any stage, the limit can’t be reduced for a period of 120 days. This is due to the anti-selective nature of the product and the fact that risks are covered on goods delivered/services rendered basis. Reducing limits shortly after a transaction is concluded would expose us to the entire risk without commensurate premium income.

Question 6

Which risks are excluded?

Accepted Answer

No risks are specifically excluded. We believe in making good credit decisions and will consider all of them and rate them individually on their own merits.

Question 7

What happens if you decline my debtor?

Accepted Answer

The real question here is: “Why am I considering selling on terms to this client in the first place?” We’ll provide you with the reasons you need so you can understand why any particular debtor is declined (we’ll never decline without being able to substantiate why). Our advice would be to offer cash terms to these clients.

Question 8

What happens if I trade over my limit?

Accepted Answer

You may select any limit within the approved credit limit that you feel comfortable with. This is our way of managing large premiums. The only difference is that you would “reinsure yourself” for the loss over the insured limit. We’d recover the insured portion (in proportion to your excess) first, and then we’d continue to help you to recover the balance of the amount outstanding.

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