Increasing your credit limit
To qualify for an increase in your credit limit, it is important that the insurer has the most recent annual figures, possibly supplemented by half-yearly figures. Should this be insufficient, you can also Enclose payment experiences or a guarantee from the parent company to get the limit though. Additionally, a well-founded business plan, combined with a cash flow forecast, may well give the final push.
Roadmap for applying for a credit enhancement
The steps you need to go through to apply for a credit enhancement, possibly supplemented by Top-Up cover, are:
Step 1: Apply for limit increase
Initially, you can always request an increase in the desired cover from the existing insurer. We will play a mediating role in this and seek solutions to obtain the limit.
Step 2: Temporary limit increase
Should you not get the limit increase permanently, there is the option of working with a temporary increase.
Step 3: Internal Top-Up limit
If the insurer maintains its position, they will offer you the option to apply for a Top-Up limit at an additional cost under certain conditions.
Step 4: External Top-Up limit
When the primary insurer provides insufficient limit on a debtor, a third party may provide additional - temporary or permanent - cover. Usually, this third party takes over the terms of the primary credit insurance. If higher cover is not possible, you must get permission from your existing insurer to allow a Top-Up insurer (by name). This is because the policy states that you should carry the uncovered part yourself and not insure it elsewhere.
Scanning limits
We regularly scan our clients' limits and provide insight into where they can restore or increase limits. We do this proactively and based on individual buyer ratings (=likelihood of bankruptcy per company). See example analysis.
More information
Would you like to know more about credit information opportunities and how to improve your current credit risk provisions? Then contact us at info@xolv.nl or 073 - 820 02 95. Our specialists will be happy to talk to you.
