One of your primary responsibilities as a policyholder is to take steps to prevent and minimize losses.
You must be able to establish both of the following two facts:
Proving these points will be easier if you can provide the following documents and/or information:
By keeping the proper documentation, you will have all the information you need to submit a claim if this is ever necessary.
Contracts and purchase orders
The most effective way to prove that a debt exists is to have a legally binding contract or purchase order. Any changes to the terms or conditions of the contract or purchase order should be in writing.
Remember that, as a party to the contract, you must adhere to your contract obligations. If the goods cannot be delivered as ordered or on time, we suggest that you obtain written agreement from the customer to make partial shipments or a later shipment.
At a minimum, contracts and purchase orders should always:
Other ways of proving a debt exists
Other means of proving a debt include the following:
Download our Claims Checklist for easy reference.
Early attention to overdue receivables is financially prudent and has proven to be effective in avoiding losses. Your follow-up will vary depending on the size of the receivable, as follows:
Reporting an overdue
Reporting an overdue can be done online using our credit insurance platform. We will then contact you to discuss loss mitigation options. You are also encouraged to contact us at any time to discuss additional courses of action. These options will vary depending on your customer’s country and industry, and may include:
Collection agencies and services
As a loss mitigation measure, we suggest you consider placing overdue accounts with a collection agency. Using the services of a collection agency can be an efficient and cost-effective way to collect debts, particularly for smaller amounts.
To take advantage of the preferential rates we have arranged with various collection agencies, you can request this service online when reporting an overdue or when submitting a claim. The collection agency will deal directly with you while providing us with regular updates. The agencies work on a “no collection, no fee” basis and all amounts recovered (less the collection agency’s fee) will be forwarded directly to you until EDC pays a claim. If you have placed an account with a collection agency yourself, you will be asked to provide the collection details when you submit your claim.
Problem accounts are those that are not yet due but may, based on information you have acquired, result in a loss. This information could be first-hand or from other sources—for example, hearing that the company is having financial troubles or that other suppliers have not been paid.
In these situations, you may wish to contact the company directly to discuss your concerns. You may also contact a claims and recoveries representative or your underwriter to discuss an appropriate course of action.
Bankrupt or insolvent customers
Typically, claims are admissible when a covered loss has occurred and the debt has remained unpaid for 120 days from the due date. One important exception is when a customer has been placed into receivership or has been declared bankrupt. In this case, a claim is admissible immediately.
Export Development Canada (EDC) has shortened the claim waiting period for all Portfolio Credit Insurance (PCI) policies (export and domestic) to 60 days from 120 days.
Questions? Email firstname.lastname@example.org
Export Development Canada (EDC) has agreements with collection agencies to assist and expedite pre- and post-claim collections. To ensure worldwide coverage we are using the following collection agencies:
What’s changed? Demand letters for amounts owing <$100,000 will be a free service for all EDC Portfolio Credit Insurance (PCI) and Select Credit Insurance (SCI) customers. Upon request, the collection agency will send an EDC demand letter on your behalf. If you haven’t received a response from the buyer within 14 days, you’ll have the option to pursue collection, but may be responsible for any contingency-based fees from the collection agency.
To request a demand letter, send an email to Debt Management with the following information:
Once the details are received, we’ll forward the request to the appropriate collection agency.
What if I already work with a collection agency?
You can continue to use any collection agency you prefer. However, after a claim is approved, EDC will work with our partner agencies to collect the debt.
Questions? Email email@example.com
Speak to our customer care team weekdays between 8 a.m. and 8 p.m. ET at 1-866-716-7201 or firstname.lastname@example.org.