This advanced and unique plan offered by ICIC is based on a three-way agreement between the policyholder, ICIC and the financing bank.From a legal standpoint the financing bank purchases the receivables and all the insurance rights of the policyholder. The policyholder continues to work with his clients in the ordinary course of business.
This plan allows the policyholder to determine the characteristics of the discounting, including: the clients’ debts that will be included in the plan, the extent of the discount, its timing and the identity of the financing bank.
This plan offers policyholders significant advantages:
In certain situations, ICIC also conducts the receivables discounting plan with non-banking financing institutions, thereby assisting the policyholder to diversify his financing sources.
Deed of Authorization
This instrument is an irrevocable order by the policyholder to irreversibly transfer to the financing institution his right to receive insurance benifits from ICIC when an insurance event occurs. This enables the policyholder to increase the financing available to him to a certain extent.
Financing for Special Transactions
This plan is similar in nature to the receivables discounting plan outlined above, but refers to a special arrangement whose bank financing is possible thanks to ICIC’s insurance backing via a “promissory note discount policy.” This policy allows the bank to discount the client’s promissory notes, with the backing of ICIC’s credit insurance. This helps ICIC to provide solutions for international transactions, by combining insurance and financing, from the moment an order is placed until the client remits payment.