At Equinox Global we aim to provide the best quality credit limit service in the industry, which utilises the latest technology. Our database contains up to date financials on more than 100 million companies worldwide. We cover risk in almost every (non sanctioned) country in the world, including Africa, Latin America and Asia. To meet the speed at which business moves we can provide credit limit response times within 48 hours or earlier.
Equinox Global believes that the best quality credit limit service can only be delivered via a non cancellable method. This is a real innovation, since traditional thinking has associated non cancellable credit limits with those insurers that do not offer a credit limit service. But new technology has changed all that. Likewise it used to be thought that companies without a sophisticated credit management of their own cannot benefit from non cancellable credit limits. Once again, the best credit limit service for those customers without a sophisticated credit management is now non-cancellable. If you want to know more about how modern non cancellable credit limits can improve the credit limit service, please click on the pop out links below ‘Detailed information about credit limits’.
While we use many different data sources to make our credit limit decisions, data is only the raw material – it is the people that make the difference.
Equinox Global has a highly experienced, international, team able to think for themselves and provide a high quality credit limit service no matter where our customers are trading.
Transparency, is at the heart of what we do and we will thoroughly discuss all of your customers with you and assign a credit rating to each and every one of them – we’ll be happy to share this rating with you.
Our access to data and networks, means we may have information which could give us a different view of the risk than you have, but we also look to your valuable insider perspective on your clients and build it into our decision making.
The best credit limit service occurs when we put our heads together to combine our joint experience and knowledge.
Detailed information about credit limits
Non cancellable credit limits are an essential component of a high quality credit limit service. When Equinox Global first reviews your credit limit requirements, we take a long term view. For most of your customers, we will be comfortable to commit 12 months forward. In the event you have any customers where we are not confident that they will stay in business for the next 12 months, then we will discuss this with you up front, giving our reasoning. Such feedback is useful information for your own forward planning. In these cases we may still be able to give cover, but may do so for a shorter period (for example a three month limit which will need to be reviewed at the end of that period) or perhaps on the basis of a trigger (for example we might wish to have the possibility to review it if a particular financial ratio deteriorates).
Non cancellable limits are the best solution for everyone, irrespective of the type of credit management they operate. We can tailor our product depending on how sophisticated your credit management is.
For example, where you want to outsource your credit management to Equinox Global, we can offer non cancellable limits via our Trigger Policy. Equinox Global will take responsibility for monitoring the credit quality of your customers on your behalf. We will agree in advance the scenario or negative event that would have to happen to your customer before we would have the possibility to review the credit limit. This ‘event’ will be set out in the policy as a trigger. Unless this agreed scenario happens, the credit limit is non cancellable. The trigger is always something in the public domain (like a publicly available credit rating). If the negative event does happen, it doesn’t mean that the credit limit will automatically be withdrawn. Rather, after the trigger event it becomes like a credit limit under a classical credit insurance policy – we have the possibility to review it. In practice, we will review the risk and if we are comfortable to continue cover, will reinstate the credit limit as a non cancellable limit again with a new trigger.
Many insureds have some credit management of their own, and for these we normally offer fully non cancellable Credit Limits without triggers or review points. It is also possible to buy a hybrid policy, where the more straightforward credit limits are fully non cancellable, and the more risky ones are monitored by Equinox Global with triggers.
Equinox Global can assess the credit worthiness of each of your customers and can discuss with you what your risk strategy towards that counterparty might be. The credit limit we give you will reflect our own risk appetite for that name, taking into account the way you manage your risks, and what exposure we already have. But no credit insurer can ever advise you of the ‘correct’ amount of exposure to that counterparty. The amount of exposure you set is a decision only you can make and if you decide to take an exposure that is higher than our credit limit, we can support you in obtaining additional cover from another insurer in order to ensure you are fully protected.
Some of our policies may include the provision whereby you may set your own credit limit up to a certain level – the level of the discretionary credit limit.
The amount of a discretionary credit limit can vary, from a few thousand dollars to several million dollars. It is important that there is total clarity in the policy wording, setting out the rules for the discretionary credit limit. Each of our customers’ businesses is unique, which is why we will discuss the credit management procedures with each customer before drafting a tailor made discretionary credit limit clause. When discussing the rules for the discretionary credit limit, we may be able to help you adopt best credit management practice from other industries and countries. Equinox Global does not offer standardised discretionary credit limit wordings, nor do we insist on the use of a customers’ credit management procedures as the basis of a policy wording. We believe these practices lack transparency and clarity.
When something goes wrong we are truly able to show the superiority of a credit limit service backed by non cancellable credit limits. We closely monitor the buyers we cover, and occasionally we notice a serious deterioration in risk. Or you may notice an event yourself, perhaps a serious overdue payment. In these circumstances, as providers of non cancellable credit limits, we will always initiate a discussion with you, as your partner, to share information and agree jointly on the best strategy going forward. We invest as much time as possible in providing a personal service at moments like these. We will back up this agreed strategy in writing, so you have no uncertainty that the steps you are taking are backed by us.