Increasing means of financing
The programs for increasing means of financing enables the ICIC insured to increase the level of finance for working capital over and above the regular credit line at its disposal, on the basis of the financing body relying on ICIC's credit insurance as collateral.
There are a range of alternatives for increasing means of financing:
Program for discounting receivables
The program for discounting receivables is designated for ICIC policyholders which are interested in recieving immediate payment for transactions, by advancing actual receipt of payment from customers.
This advanced and unique program by ICIC is based on a "triangular agreement", whose partners are: the insured, ICIC and the financer. From the legal aspect – in this program the financer purchases in the framework of "discounting receivables" the debts of the insured's customers, which are insured by ICIC.
Highlights of the program
The discounting of receivables financing program provides you with:
- Increasing means and sources of your financing – the financer purchases in the framework of "discounting receivables" the debts of customers which are insured by ICIC, so that the insured receives immediate payment while the operations with the customers and dates of payment remain unchanged.
- Improving the balance sheet structure - the program enables balance sheet adjustments in the event of transactions which deviate from the DSO, an immediate improvement in working capital should the need arise, and meeting financial covenants restrictions.
- Managing the program – full flexibility to determine the discounting characteristics, including: the customers to be included in the program, the extent of the discounting, the date of the discounting and the identity of the financer.
Financing of transactions program
The financing of transactions program is intended for policyholders in the short or medium term transaction program accompanied by detailed financing arrangements which enable a shortening of the transaction for the insured, while providing a unique solution of insuring the discounting of drafts or buyers credit , which in most cases is an integral part of the insurance transaction
Highlights of the program
The transactions financing program provides you with:
- An increase in means of financing – the financer purchases the customers debt thanks to ICIC's insurance cover and settles its payments rapidly.
- Solutions for international transactions – the program enables you to carry out special and widespread transactions of combining insurance and financing as from the date of the order until actual payment by the customer.
Financing program through "authorization letters"
A financing program through "authorization letters" is intended for policyholders which are interested in transferring their rights to receive insurance compensation from ICIC at the time of an insured event, in favor of the financing factor without the possibility of recourse.
In this way the insured is able, to some extent, to expand the level of financing working capital at its disposal.
Highlights of the program
The transactions financing program provides you with:
- An increase in financing – through a simple document signed by the three factors (the insured, ICIC and the financing body), creates additional convenience for the financing body regarding the strength of the customers clause in the insured's balance sheet.
- Reasonable costs – the program enables reliance on the financial strength of ICIC in favor of expanding financing of working capital with a similar cost or a more convenient one than the cost of ordinary financing by the insured.
The advantages of increasing financing on the basis of ICIC's insurance
- Expanding financing lines for working capital – the plans enable the insured to increase the level of financing over and above the ordinary credit lines at its disposal, as the financer relies mainly on the credit insurance of ICIC as collateral.
- Worthwhile financing price – the cost of financing is determined between the insured and the financer, and generally is equal and often even lower than the regular cost of the insured in view of the collateral.
- Improved balance sheet – the discounting programs enable the insured to reduce the "receivables" clause in the balance sheet and thus to improve the insured's financial ratios.
- Flexibility – full flexibility to determine the characteristics of the plans including: the customers to be included in the programs, the amounts, the date of utilization of the extended financing, and the identity of the finance.