Credit insurers' policies are quite logically structured. You must have a credit limit and you must adhere to a time limit. These 2 conditions will take you a long way. Other than that, you act like a good merchant and then, in fact, everything is fine. To make your life easier, we give you the tip that will help you handle your claims more efficiently.
Credit limit
Your total outstanding balance on a debtor must fit within your credit limit. Should you have also co-insured manufacturing/contract risk, your limit must be sufficient for your total outstanding balance plus orders in process. You can request a limit in several ways:
- Online through a credit insurer's system
- Self-assessment;
- Blind coverage
- Payment experience
- Credit Information Report
Read the article on the creation of a credit limit From our March 2021 newsletter.
Time limit
Insurers apply 2 time limits:
- The automatic cover stop for new deliveries. This is usually 60 days after the due date of the oldest invoice.
- The deadline by which you must transfer a collection. This can vary, but is often 75 to 90 days after the due date of the oldest invoice.
The said credit and time limit are the two main checkpoints for the insurer when assessing a claim.
The PolicyManager
Did you know that in almost every accounting package you can enter a credit limit and print out an ageing list? This can be a labour-intensive project when you manage multiple debtors, but we now have the perfect solution for this. We have developed the PolisManager that not only takes a lot of manual work off your hands, but also prevents you from forgetting to claim.
How does the PolisManager work?
By linking your accounting package with the insurer's systems, you minimise the risk of errors and save a lot of time. After each update, you automatically receive lists and notifications and PolisManager automatically exchanges this data with the insurer. So you will always be on time to apply for an increase in your credit limit. It also prevents you from delivering during arrears or starting a collection too late.With PolisManager, we guarantee faster and better handling of your claims.
Want to know more?
Would you like to know how to deploy PolisManager appropriately for your organisation? Contact the specialists at Xolv and we will be happy to advise you!
