The buyer’s credit limit has been cancelled and it requests me to supply goods by advance payment. Will my claim application be affected if I decides to trade with him again?

    Small Business Policy (SBP) / Self-Underwritten Policy (SUP):

    According to the Policy, unless otherwise agreed by HKECIC, any payment, whether or not relating to the insurable contracts, received during the period when the cover is suspended and/or after the credit limit is cancelled either automatically or by HKECIC on any buyer shall be deemed to reduce the outstanding amount which has fallen due first even though the buyer may have indicated that the payment was in settlement of an outstanding amount falling due at some later date or even such payment was not in respect of the insurable contracts. As such, the payment received for the new shipments would be allocated to settle the shipment which has fallen due first which may affect the amount of claims payment.

    Online Micro-Business Policy (OMBP):

    According to the Policy, unless otherwise agreed by HKECIC, any payment, whether or not relating to the insurable contracts, received after cancellation of the credit limit by HKECIC on any buyer shall be deemed to reduce the outstanding amount which has fallen due first even though the buyer may have indicated that the payment was in settlement of an outstanding amount falling due at some later date or even such payment was not in respect of the insurable contracts. As such, the payment received for the new shipments would be allocated to settle the shipment which has fallen due first which may affect the amount of claims payment.