Trade Credit

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

Premiums are calculated either on the credit limits approved by us or a turnover or outstanding balances basis, depending on the structure of the policy. The rate is based on the outcome of the assessment of the underlying debtor (A to D rating) or on a portfolio rating as you choose.

Once all the required information is provided, we will take four working days to perform a comprehensive credit review on the debtor and provide a premium rate.

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 cannot 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 a goods delivered / services rendered basis. Reducing limits shortly after a transaction is concluded would expose us to the entire risk without commensurate premium income.

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.

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

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 would recover the insured portion (in proportion to your excess) first, and then we would continue to assist you to recover the balance of the amount outstanding.