Questions and Answers
Q- As a distributor of Omani produced goods, can I avail ECGA’s credit insurance cover?
Yes indeed. The export credit insurance services is not a restricted only to manufacturers but also distributors and others involved in exporting Omani produced products.
Q- Does ECGA take over recovery action once a claim has been paid?
After payment of a claim, ECGA has the right to take over the debt, but while it does exercise this right in some instances, it will normally require the policyholder to continue recovery action along the path already agreed with ECGA subject to any further requirements it may have.
Q- As a credit insured exporter to ECGA how can I obtain cover for pre-shipment as well as post-shipment periods?
Export credit indemnity cover is available prior to shipment if your company is carrying any risk of loss. A Contract Policy can be issued by ECGA to the exporter for such shipment. The extent of pre-shipment risk will depend upon the type of goods produced. If non-standard or made to individual specification pre-shipment cover will be given. Otherwise post shipment only. The interest subsidy will be available from date of advance obtained from the bank only.
Q- Upon receiving ECGA's credit limit approval what should I do?
You should ensure that the approved buyer whose name and address is shown on the credit limit is the same party with which you have entered into the contract of sales. A slight variation in the name of a company can mean another separate legal entity. Should you wish to trade with the buyer's parent or associate or subsidiary companies, it is necessary for you to send in separate Credit Limit Application (CLA) since members of the buyer's group of companies are different legal entities. You should also pay particular attention to the amount, the payment terms, the expiry date (if any) as well as any specific conditions or endorsement shown or attached on it, e.g. the credit limit covers specific shipment only or you must report overdues to ECGA immediately or any other endorsement attached to the credit limit approval.
Q- What action as policyholder should take when recoveries are received from the buyer?
All proceeds of recovery action must be remitted in full promptly to ECGA for allocation. It will then allocate them in the proportion in which the original loss was shared and pay you your share.
Q- To remain fully insured is it necessary for me to limit the value of my contract to the precise value of the credit limit agreed by the Agency?
Not at all. On a large contract, you may for example be able to spread your dispatches so that the amount outstanding for goods exported is, at any one time, within the approved limit. This means you can undertake contracts of a value greater than that given of your credit limit, since it is revolving.
Q- When and how should I inform the Agency when the buyer delays payment?
Immediately any payment becomes two months outstanding, or when you notice the buyer has encountered financial problems, or when you hear an adverse information about the buyer. You can inform ECGA by phone or by any other means which are convenient to you such as E-mail and fax.
Q- Are credit limits issued to buyers by ECGA supersede earlier limits?
Credit limits issued by ECGA usually supersede all earlier limits but do not necessarily invalidate them. At Date of Ascertainment of Losses only one is judged applicable.
Tips to Exporters
In a business that is fiercely competitive and increasingly unpredictable, your ability as a growing enterprise to safeguard against bad debt and ensure the safety of your cash flow assumes even great significance. Hence it is important for you as an exporter to insure your exports receivables with ECGA.
Credit insurance helps you to avoid the risks associated with non-payments resulting in a secure cash flow which gives you freedom to pursue your business strategies with confidence. Avail tangible benefits by credit insuring your export business with ECGA
3). Offering you the best credit risk protection at a price you can afford, let ECGA provides you with the reassurance needed in today’s business world to secure your company’s growth.
By reducing management time spent on chasing aged debts, your own staff will be able to focus on key business goals.
When the buyer advises that he anticipates not being able to pay as agreed, the buyer had already broken one of the promises made when the account was opened - the promise that the buyer would meet the terms of payment. It is not necessary to wait for the other shoe to fall before taking protective action.
ECGA takes this opportunity to congratulate our credit insured exporters and other Omani companies that have won His Majesty’s Cup for Best Five Factories in Oman for the year 2002.
Oman Fiber Optics Company SAOG
Jotun Paints Oman LLC
Voltamp Transformers Oman LLC
National Detergents SAOG
Mohsin Haider Darwish – Gas Division. LLC
The Agency also compliments the credit insured exporters of ECGA and others for being awarded the Certificates of Appreciation for the year 2002.
Oman Cables Industry SAOG
Voltamp Manufacturers Co. LLC
Oman National Dairy Products Co. Ltd. SAOG
Reem Batteries & Power Appliances Co. SAOG
National Heaters Industries CO. LLC
The Omani exporters have long recognized and appreciated that one of major keys to success is to insure with ECGA for safe export business. The Agency provides confidence, encouragement and incentive in support of its services to exporters during the past ten years.
Issue 1/2001, Issue 2/2001, Issue 3/2001, Issue 4/2001, Issue 1/2002, Issue 2/2002, Issue 3/2002, Issue 4/2002