Please see below our comments further to the discussion with Lease IT for your kind perusal and communication with the client naka:
1. Cover for recourse factoring
- Coface’s factoring insurance policy is basically structured for non-recourse factoring where the factoring company/bank incurs loss should there is a buyer default. Cover for recourse factoring is available only if the condition for customer (supplier)’s insolvency is added, in additional to non-payment of the buyer.
- We cannot remove the condition for customer’s insolvency.
2. Dispute
- Under the scope of policy, disputed debts cannot be covered i.e. claim payment cannot be made on a disputed debt until such dispute has been settled in favour of the customer (supplier) or the insured.
- The request for provisional claim payment to be made on disputed debt, with a condition to return if the debt is proven invalid, cannot be entertained.
3. Insured Percentage
- Insured percentage for non-recourse factoring is 90% of the transferred debt, i.e. 90% of the invoiced value.
- Insured percentage for recourse factoring is 90% of the financed portion of debt i.e. 90% of the advance amount financed by the factoring company/bank.
4. Discretionary Credit Limit
- DCL is not offered for all factoring companies in Thailand. All credit limits are to be determined by the insurer.