You should normally request a credit limit for all insurable customers based in the agreed countries (see policy schedule), unless some customers have been specifically excluded from the policy. “Small customers” with outstanding balances below the contractually agreed notification threshold do not have to be notified.
What does Allianz Trade do when I request a credit limit?
Allianz Trade checks the customer’s creditworthiness and sends you a credit notice for each notified business. This states whether Allianz Trade will provide coverage and if so, what the cover limit is.
If your request is confirmed, we will monitor your customer’s creditworthiness on an ongoing basis.
Who/What is not insurable?
- Public-law entities, e.g. national governments, state governments, Swiss cantons, municipalities.
- Affiliated companies in which you directly or indirectly hold a majority stake.
- Receivables from the rental or leasing of real estate.
- Receivables with payment periods that are longer than specified in your policy schedule.
For whom must a limit be requested if the delivery goes to a different company than the company to which the invoice is sent, or if the invoice is paid by another company?
Insurance always applies to the recipient of the goods or the service. That’s usually the company that places the order.
This can only be a company at its registered head office, i.e. not a registered branch or other secondary establishment.
In your policy, we agreed with you that you will request insurance from Allianz Trade for all customers in the stipulated countries.
How does self-checking work?
If the cover limit you need is under the notification threshold specified in your policy, you will receive insurance cover for your customer in the following cases:
- Your customer has purchased goods or services from you at least twice in the last 12 months and paid on the originally agreed date or before the overdue point or
- You have a written credit report on your customer from a bank or credit bureau, provided that the report is no more than 12 months old and the credit you wish to extend to the customer is within the maximum credit amount.
- Alternatively, if agreed an, EOLIS credit check can also be carried out for cover limits below the notification threshold.
- In general, you must not have become aware of any news or circumstances in the last 12 months before the check that preclude the granting of credit.
For cover limits above the notification threshold, a credit check must always be carried out by Allianz Trade. The quickest and easiest way to do this is via EOLIS.
Simplifying your day-to-day work – with full cover for your “small customers”.
Am I still covered under the self-check rule if Allianz Trade has refused to grant cover?
If Allianz Trade refuses to grant a cover limit or has cancelled the insurance cover, insurance cover cannot be granted under the self-check rule for the next 12 months unless this is expressly permitted in the credit notice.
What happens if a customer’s outstanding balance suddenly goes up?
If the outstanding balance of a “small customer” goes over the notification threshold, please contact Allianz Trade immediately to request a cover limit for the customer.
I am unsure about a customer. Can Allianz Trade do the check for me?
Yes, we are happy to do a credit check on a “small customer”. However, we will charge you an annual credit check fee for doing so.
What is self-checking?
You do not need to request a cover limit from Allianz Trade for “small customers” whose outstanding balances are below the notification threshold.
These customers will still be insured if the self-checking option is agreed in your insurance policy and the necessary conditions are met.
The exact rules can be found in the “self-checking” section of your policy.
What do I do if the credit report does not state a maximum credit amount?
Ask the credit bureau for a maximum credit amount. Again, the information must not be inconsistent. The upper limit for insurance cover under the self-check rule is always the notification threshold.
How do I apply for a limit?
The best and fastest way is online via our ELOIS System.
What do I need to bear in mind?
- Please check carefully who your obligor is, i.e. who has to pay your outstanding receivable.
- We can only provide cover for legally independent businesses at their registered office. Amounts receivable from dependent branches, agencies or permanent establishments must always be insured via the legal registered office.
- Please bear in mind that the we will only pay claims up to the annual “maximum claims limit” for each insurance year.
- Don’t forget to answer all questions about your previous experience of your customers’ payment behaviour, so as not to jeopardise any subsequent claims payments.
What about customers I supply under the self-check option?
- You do not need to report overdue payments from these customers.
- However, receivables in respect of any new supplies to the customer will cease to be insured as soon as the exclusion point stated in the policy has been passed. They will remain uninsured until all due receivables have been paid and no further negative information exists.
How does that affect my insurance cover?
No further supplies will be covered once the customer has exceeded the time limit set in the insurance policy for the automatic cancellation of insurance cover (§ 5 GTI); this is usually 30 days after the original due date. Any new receivables will no longer be included in the insurance cover.
Exception: If an overdue receivable is smaller than the amount specified in the insurance policy for the “restriction of automatic cancellation of insurance cover”, then it does not need to be reported and your cover will not be cancelled. This amount is per invoice.
What do I do if a customer with a cover limit goes past the overdue point?
- If an insured receivable is overdue, you should report it to Allianz Trade immediately.
- If you know the reason for the delay (e.g. complaint), please state it.
- Please report overdue receivables to us via EOLIS.
- Note: Once you have reported an overdue receivable, any new receivables will no longer be covered, unless we have explicitly told you in our response that the insurance cover will remain in place.
Paying on time is a central part of any business relationship. If a due date is exceeded, caution is advised.
Risk never stands still. You should therefore take the following reporting obligations seriously. It is in your own interest to do so.
We all know that risk in the market is constantly changing. To ensure your insurance cover remains in force, please pay attention to the following reporting obligations. These vary depending on whether the customers are credit-checked by Allianz Trade or by you yourself.
| Reporting obligation | Cover limit | Self-checking |
|---|
| When a receivable passes the overdue point, or is clearly going to | Yes | No |
| Even if the overdue point has not been passed, please report: | ||
| Extensions of the original payment date that was agreed for the supply (Note: Requires approval from Euler Hermes!) |
Yes | No |
| Actual or impending insolvency | Yes | Yes |
| Adverse information about the customer | Yes | No |
| Serious deterioration in payment habits | Yes | No |
| Switch to payment in advance / cash on delivery for credit reasons or discontinuation of supply | Yes | No |
| Extensions of the settlement date for bills of exchange, unpaid cheques or bills of exchange, direct debits returned for lack of funds | Yes | No |
| Initiation of debt recovery measures (via Euler Hermes Services Schweiz AG) |
No | No |
| Commencement of legal action | Yes | No |
| Occurrence of an insured loss | Yes | Yes |
| Instalment or moratorium agreements, out-of-court settlement proposals (Note: Approval required from Euler Hermes before you sign the agreement!) |
Yes | Yes |
a) Reporting overdue debts
You should normally report overdue receivables from all insurable customers based in the agreed countries (see policy schedule). In exceptional cases, some individual customers may have been excluded from your policy. “Small customers” whose outstanding balance is below the agreed notification threshold also do not need to be reported.
Why does Allianz Trade sometimes set additional reporting dates?
- If your customer’s economic situation requires it, we may need you to give us information more often.
- In higher-risk cases, this enables us to find out whether receivables are still being paid or whether we should start making provisions for a claim.
- You do not need to tell us about any payments you receive until the specified reporting date.
Do I need to tell Allianz Trade every time I receive a payment?
No, you only need to tell us about payment receipts on the stated reporting dates.
Can I report multiple late payments by a customer at the same time?
If several receivables from a customer become overdue within a few days and you want to report them to us in one go, please enter the date, the due date and the original payment period of the oldest invoice on the form. Please also state the total amount of all overdue receivables (total amount due).
How do I report an overdue receivable?
Please report overdue receivables to us via EOLIS.
Note: If you notify an overdue receivable, you must still submit a debt collection order separately to Allianz Trade Services Schweiz AG.
What do I need to bear in mind when completing the form?
Please read the statements on the “Overdue receivables report” form carefully and answer all the questions in detail – otherwise we will not be able to process your report.
What information will I receive from Allianz Trade after my report?
We will issue a formal written response to your report.
b) Instalment plans
Instalment plans always require our consent.
What do I need to bear in mind with regard to instalment plans?
- You must provide us with the written agreement.
- We will then issue a formal response as soon as possible.
- Instalment plans should be notified to us via EOLIS.
c) Cheques and bills of exchange
When do I need to report cheques and bills of exchange?
- When the original settlement date of a bill of exchange is extended.
- When a bill of exchange is protested.
- When a cheque bounces.
- Exception: Reporting is not required for self-check customers.
What are risk-increasing circumstances?
Examples of such circumstances include:
- Your customer’s payment behaviour deteriorates significantly.
- You become aware of adverse information about the customer’s financial situation.
- Cheques and bills of exchange are not cashed due to lack of funds.
- The original settlement date of a bill of exchange is extended.
- Direct debits go unpaid due to lack of funds.
- For credit risk reasons, you decide only to supply the customer in exchange for payment in advance or cash on delivery.
- You instruct a lawyer or a collection agency to collect the receivable or take court action to recover the debt.
- Actual or impending insolvency.
a) A balance-based premium has been agreed
Why do I have to report outstanding balances on an ongoing basis?
We need this information because it is the basis for calculating your premium. Your insurance cover and ability to make claims are only guaranteed if you report this information on time.
When should I declare my balance?
- We have set a declaration date in your insurance policy.
- Please keep records for twelve months after notification
How long should I continue to include an outstanding receivable in my declaration?
- Until either the receivable is paid or
- an insurance loss occurs (see also section 8, “Reporting a claim”).
b) A turnover-based premium has been agreed
When should I declare my turnover?
- Once a year. You will receive a reminder to declare your turnover at the end of each insurance year. The reporting deadline is 30 days (i.e. the turnover declaration must be sent to Allianz Trade by the end of the first month of the new insurance year).
- The amount to be reported is your turnover for the last insurance year.
What else do I need to watch out for?
- Report your balance or turnover ex VAT for all customers.
- If you have a balance-based premium, you only need to declare balances up to the maximum insured amount for premium calculation purposes.
- Note: Bills of exchange are only considered paid when cashed.
- If your policy includes additional cover, such as for production risk, an additional premium must be paid. When reporting your turnover or outstanding balance, please pay attention to the premium calculation method agreed in the note to the relevant clause in your policy.
- If affiliated companies are also insured under your policy, their outstanding balances or turnover must also be reported – either on the main list or separately, depending on what we have agreed with you.
- To save credit check fees, check to see if you no longer need part of your cover next year. You have until the 20th day of the first month of the new insurance year to cancel any unneeded cover limits. EOLIS is the easiest way to do this. Of course, we will send you a written reminder about this in good time before the end of each insurance year.
What constitutes an insured event? (according to § 12 GTI)
A distinction is made between the insolvency of a customer and a “non-payment”. In both cases, the outstanding receivables are considered to be non-recoverable.
For insolvency, the insured event (i.e. the point at which you can claim on your insurance) occurs when insolvency proceedings are commenced. For a non-payment, the insured event occurs when the non-payment period specified in your policy expires.
What do I do in the event of an impending loss?
Take action as soon as your customer stops paying their bills. Send a formal payment reminder to your customer.
Your policy schedule will tell you the deadlines for reporting a claim. The easiest and quickest way to inform of us a claim is online via EOLIS. You can also upload all the required documents via EOLIS. If a customer becomes insolvent, please report your outstanding receivables to us immediately
What documents must be submitted with a claim?
- Invoices
- Outstanding items list
- Trading history (customer account for the period from 12 months before the oldest outstanding receivable up to today’s date)
- Additional documents as requested
Does Allianz Trade also offer collection services?
Allianz Trade Services Schweiz AG will be happy to support you and carry out the necessary collection procedures for you.
If your policy includes collection services, Allianz Trade Services Schweiz AG will start the necessary measures as soon as you report your claim.
Even if your policy with us does not include collection services, you are free to place individual debts with Allianz Trade Services Schweiz AG for collection.
Whenever you make a claim, please let us know whether or not you would like to use our collection service.
When will my claim be paid?
As soon as an insured event has occurred and you have submitted all the necessary documents to us, a claim review will be carried out. If all the conditions are met and an insured default is proved, you will receive a claim payment from us within 30 days.
Do I have a duty to mitigate losses?
As a policyholder, you have an obligation to take all necessary measures to minimise a loss or prevent it from occurring. Adequate measures must be taken immediately if a payment is not made on time. In particular, the customer must be given a formal payment reminder, and where appropriate you should start recovery procedures or even take legal action.
You can start collection procedures yourself or appoint us as a collection service provider to take all necessary steps.
Do I also have a duty to mitigate losses after a claim has been paid?
The collection procedures against your customer must be continued. You must still act to mitigate the loss. Please keep us regularly informed if any further payments or returns are received.
Do I need to tell you if I receive a payment?
After you have reported a loss to us, you must tell us about any payments you receive. Payments received will be deducted from the amount of your outstanding receivable to reduce the insured loss, in accordance with your policy terms.
In all cases, please consult us before you take any more action regarding your customer.
What can I do online?
- Make credit check requests.
- Get immediate information on credit decisions.
- View and manage credit check requests.
- List and manage cover limits.
- Consult decision history.
- Download data to your IT system.
- Search for the addresses of your customers.
- Change customer numbers.
- Process larger customer lists.
- Report overdue receivables.
- Request approval for an extension of payment deadlines.
- Place a debt for collection via Allianz Trade Collections Online.
- Report claims