Domestic Factoring Insurance

Domestic Factoring Insurance – insurance of short-term domestic receivables due to a factor

Key benefits

• we provide banks and financial institutions which have purchased receivables with cover against the risk of non-payment by a domestic buyer
• we offer flexible insurance conditions
• we provide a solid evaluation of the buyer’s financial standing and creditworthiness
• we conduct effective debt collection
• we pay indemnity in a timeframe which relieves the bank of the necessity to create special reserves for risks covered by the insurance agreement
• we allow for new buyers to be submitted for cover after the insurance agreement is concluded

Entities eligible
Banks and financial institutions providing factoring services, particularly factoring without recourse.

Subject of the insurance
Undisputed receivables, purchased by a bank or a financial institution, due from domestic buyers and arising from deliveries of goods and services, with repayment terms of up to one year.  Receivables should be purchased prior to their due date, but no later than 30 days from the date of the invoice.  The cover is valid provided that the buyer is informed about the purchase of receivables.

Scope of cover
Loss of receivables caused by the occurrence of commercial risk:

• legally confirmed insolvency of the buyer (bankruptcy)
• default – delay in payment by the buyer exceeding 90 days

We cover buyers based in the Republic of Poland.

Costs
The premium is set individually for each insurance agreement.  Pricing is primarily based on the following variables:

• scope of cover
• value of receivables submitted for cover
• payment terms
• buyer’s industrial sector
• results of hitherto cooperation with the insured