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Frequent Asked Questions
What is credit insurance?
What are bonds and guarantees?
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 issuing a bond/guarantee?
Do you provide credit insurance cover for all countries?
What is the indemnity 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?
It 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 the buyer.
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What are bonds and
guarantees?
Bonds are 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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Why should I consider
using credit insurance and how can I benefit from it?
Credit insurance:
- offers protection against the devastating effects of
non-payment arising from commercial, economic and political factors,
- protects your balance sheet against bad debts,
- allows you to safely expand your sales, develop and venture into new markets
- stabalise your cash flow and enhances your borrowing power
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Why should I consider using bonds and guarantees and
how can I benefit from it?
Bonds and guarantees with the bank will result in a tightened credit line with the bank.
our services do not have any restrictions and will enable you to utilise your bank facilities
for other financial purposes.
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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 that you offer to your buyers and your credit
management. Our Business Development Team can provide you with a
quote on the recommended terms of cover once we have received
your proposed portfolio for credit protection.
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What is the cost of
issuing a bond/guarantee?
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?
We provide cover to a wide range of countries, including Singapore.
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What is the indemnity
percentage?
The indemnity 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 default payment, 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 protects 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?
Simply contact our Business Development Team at 6337 4779 or send your enquiry to us
by fax at 6338 9267 or email us at ecics@ecics.com.sg
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