We always advise you to request an increase request from your credit insurer in a timely manner. Talk to your buyer and let it be known that you have a credit insurer that needs recent data. Many times the 2021 figures are ready or already known internally. Explain that your credit insurer will keep this data confidential for the purpose of setting limits.
Xolv helps set proper limits
Xolv's underwriting team is constantly working to intercede on your behalf to obtain figures and set the right limits based on recent information. First of all, Xolv will carry out a careful analysis and see if we can still set the originally requested credit limit higher. It may be possible to work with a temporary (seasonal) limit until the new 2021 figures are known.
Top-up limit with Top-Up cover
If your credit insurer reduces or sets lower a credit limit on a debtor, you can supplement the credit limit with a Top-Up coverage. The Top-Up limit is an additional credit limit that a credit insurer can issue. Basically, this is up to a maximum of double the reduced or lower credit limit set. For this, they charge additional fees that vary from insurer to insurer. Depending on your buyer's Credit Rating, the credit insurer will assess this Top-Up limit.
Escape option: request limit from second insurer
If your primary credit insurer does not issue the Top-Up limit, you can choose to request the limit from a second insurer. This is excluded by default in your policy and can only be done if the primary insurer explicitly gives its approval for this. The secondary Top-up insurer usually follows the primary insurer and charges a separate premium. If a collection or claim occurs, the primary insurer takes charge and the secondary insurer follows.
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