Not necessary as the credit limit is “revolving” provided that the maximum credit outstanding at any given time does not exceed the credit limit amount already approved.

The exporter should ensure that the approved buyer whose name and address is shown on the credit limit is the same party with which he/she has 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 shown on it, e.g. the credit limit covers specific shipment only or you must report overdues to Credit Oman immediately or any other endorsement attached to the credit limit approval.

Not necessary. Shipments could be effected over a period of time so that the amount outstanding for goods exported is, at any one time, within the approved limit. In other words an exporter can undertake contracts of a value greater than that given of your credit limit, since it is revolving.

Cancelled or suspended credit limits continue to be applicable to outstanding debt pertaining to shipments effected prior to the date of cancellation or suspension of credit limit but no future shipments will be covered.

A credit limit does not have expiry date and it remains in force during the validity of the policy as it operates on revolving basis unless any credit limit is canceled and advised by Credit Oman due to adverse information on the buyer or due to unutilization for specific period.

Firstly, the amount of the credit limit application should be realistic and close to the credit insured by exporter’s probable requirements in the foreseeable future.

Second, the policyholder should provide (Credit Oman) with full and correct details of the buyer’s trading style, address and the name and address of his banker.

Third, it is important that the policyholder gives full and actual details of previous trading experience with the buyer.

Fourth, if the policyholder has up to date credit information on the buyer he can attach such reports together with any other additional information to the application.

A-It minimizes the credit risks and maximize opportunities by exporting goods abroad

C. – You can derive better credit control by keeping tabs on the buyers and credit limits as approved by Credit Oman.

D. – You can assign your export Credit Policy as additional collateral to a bank in order to obtain additional financing at better terms

E. – You can discount export bills as with Banks

F. – It provides greater financial liquidity and flexibility administering foreign receivables portfolio.

As it is a violation of a specified term of the Policy, Credit Oman of Oman, as the insurer, has the right to refuse the business declaration after the stipulated time. Thus, the sales already made will be off cover. Hence, it is highly important that all your sales, whether it is domestic or exports, are declared on time.

 If a buyer who is unable to make payment on of the due date and requests for more time to pay the amount, the exporter should make a good commercial judgment on the request based on facts and circumstances of the case. If it appears that extending the due date of the bill is the proper course of action, then the exporter should seek the approval of the insurer (Credit Oman), detailing  the reasons justifying such action.

Yes, Credit Oman provides credit insurance cover to a wide range of countries worldwide and Credit Oman also insures domestic sales.