The majority of Trade Credit Insurance Underwriters and Company Information Providers grade individual companies based either on their latest filed financials, current management information (which could include a cash flow statement), current payment performance or adverse notifications from other insured suppliers.
This individual company risk grade enables an Underwriter or Company Information Provider to recommend an approved credit limit/contract limit.Why is this important?
When one of your Suppliers approaches either a Trade Credit Insurance Underwriter or Company Information Provider for a credit limit or monthly/contract limit, you need to ensure that this assessment is based upon the most up-to-date & comprehensive information available. In the event that you are unable to secure the credit limit required you may have no option but to pay in full or part for the goods or services, which will tie up valuable working capital.
At EFCIS we support many of our Clients to better understand what information is required by which Underwriter(s) or Company Information Providers to ensure the best possible positive rating on your company.
Why not contact us to see how we can help you?