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Frequent
Asked Questions
This section will help you get answers to frequently
asked questions. If you do not see the answer to your question
below or need further explanation, please call us at:
(+65) 6337-4779 or e-mail ecics@ecics.com.sg
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What is credit insurance?
What are the types of credit insurance offered?
What are bonds and guarantees?
What are the different types of bonds and guarantees
offered?
Why should I consider using credit insurance and how
can I benefit from it?
Why should I consider using bonds and guarantees and
how can I benefit from it?
What is the cost of obtaining a credit insurance policy?
What is the cost of bonds and guarantees?
Do you provide credit insurance cover for all countries?
Do you insure any specific type of goods?
What is the insured percentage?
How long does it take to process claim?
How do I file a claim?
I have no bad debts and what is the use of credit
cover?
How can I get more information on credit insurance?
What is credit
insurance?
Credit insurance provides risk protection for the seller, manufacturer,
trader who sells on credit terms to buyers against non payment by
his buyers. Non payment may be due to buyer’s insolvency,
protracted default by buyer or economic and political conditions
which are out of the control of the seller and buyer.
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What are the types
of credit insurance offered?
There are many types of credit insurance policies available. The
Comprehensive Policy (Shipments) which covers mainly short term
credit for goods sold /or services rendered to a buyer on a repetitive
basis. Short term credit would mean credit terms of up to 180 days.
The Specific Policy on the other hand is a tailor-made policy and
this is given to suppliers who sell on credit terms of above 180
days to 5 years credit. Besides the Comprehensive Policy and the
Specific Policy, ECICS also provides cover on domestic sales made
between a Singapore seller and Singapore buyer.
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What are bonds
and guarantees?
Bonds are simply written guarantees given by one party (the bond
provider or guarantor) to another (the beneficiary) in respect of
the performance of certain contractual obligations undertaken by
the third party.
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What are the different
types of bonds and guarantees offered?
The common bonds and guarantees offered by ECICS Limited are:
- Performance Bond
- Tender Bid Bonds
- Advance Payment Bonds
- Customs Bonds
- Foreign workers Bond
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Why should I consider
using credit insurance and how can I benefit from it?
a) With credit insurance you are protected against the devasting
effects of non payment arising from commercial,
economic and political factors;
b) Your Balance Sheet is protected against bad debts;
c) With the credit insurance you can safely expand your sales, develop
and venture into new markets; and
d) Stabilise your cash flow and enhance your borrowing power.
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Why should I consider
using bonds and guarantees and how can I benefit from it?
We can provide bonds and guarantees to meet your requirement and
you are in a better financial position as your bank facilities are
better utilised for other banking facilities.
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What is the cost
of obtaining a credit insurance policy?
Our premium charge is competitive and price is dependent on the
portfolio of risks (such as countries) offered for credit insurance,
the credit terms which you offer to your buyers, and your credit
management. Our Business Development Team can provide you with a
Non-binding quote on the recommended terms of cover once we have
receive from your proposed business portfolio for credit insurance.
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What is the cost of bonds and
guarantees?
The cost for bonds and guarantees would depend on the nature of
the project, bond period, and your track record in the business.
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Do you provide credit insurance
cover for all countries?
Yes, ECICS provides credit insurance cover to a wide spread of countries
and ECICS can also insure domestic sales.
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Do you insure any specific
type of goods?
ECICS can insure almost all types of consumer goods or services
on short term credit and capital goods or equipment where credit
terms are above 180 days.
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What is the insured percentage?
The insured percentage is up to 90% of the gross invoice value.
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How long does it take to process
claim?
Your claim will be paid immediately if your buyer is insolvent and
you have obtained acknowledgement of your debt filed with the Receiver/Manager
or Liquidator.
For payment default, the claims waiting period is 6 months from
due date and for other causes of loss insured under the Policy,
it is approximately 4 months.
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How do I file a claim?
You can file your claim immediately when you are aware of any adverse
information which may affect the buyer’s payment of your invoice.
Our Claims Officer will provide full assistance to you to help you
file a claim and recommend appropriate measures to minimise your
loss.
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I have no bad debts and what
is the use of credit cover?
The credit insurance policy is a risk management tool and it helps
you to stabilise your cash flow, and protect your trade receivables
in the ever-changing competitive and economic business climate.
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How can I get more information
on credit insurance?
It is as simple and easy as ABC – call our Business Development
Team or send your enquiry to us by fax or email.
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