Factoring insurance policy
The policy protects against the risk of payment default by an obligor. In the event of non-payment, Dhaman covers up to 90% of the insured invoice value for both domestic and export transactions.
Insured Risks
Credit Risks
Non-payment due to protracted default or insolvency of the obligor.
Political Risks
Restrictions imposed by authorities in the obligor’s country.
Political violence, war, civil unrest.
Expropriation, nationalization, or confiscation.
Currency inconvertibility or transfer restrictions.
Eligibility
Eligible Transactions
Export of goods and/or services of Arab origin. Import of goods and/or services of non-Arab origin by an Arab country from all over the world, provided the imported goods are developmentally sound for the importing country such as commodities, equipment, food, pharmaceuticals etc.
Eligible Financial Institutions
Factoring companies of Arab or joint Arab-foreign nationality
Procedure
1
Request for quotation
The Factor submits the identification form
2
Dhaman provides the Factor with an indication detailing the scope of cover and the pricing
Factoring Insurance Quotation
3
Issuance of the Insurance policy
Acceptance of quotation /policy signature/premium payment
4
Declaration of factored invoices on approved obligors on a monthly basis
Declaration of factored invoices
5
Compensation Process
Declaration of default of payment/Compensation disbursement/Collection from the defaulting obligor
End
Contact Us
Islam Al-Saffy Head of Trade Credit Section
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