First Limit

The key to safe sales growth.

CIFS First Limit provides policyholders with on-line access to immediate discretionary limit decisions on appropriate trading levels with potential business partners – bringing certainty and security to the trading environment It is the result of a major system initiative which builds on CIFS’ market-leading skills.

First Limit is designed to alleviate the tension between policyholders’ sales growth imperatives and the need to maintain sound credit management practices that provide protection from business failures and non-payment of monies due.

First Limit is introduced at a time when companies can have great difficulty in securing trading limits due to the “lag” effect of the recession on their customers’ P&L accounts and balance sheets – putting the brake on business expansion.

First Limit takes the opposite tack. CIFS will agree to an initial trading limit – typically £5,000 – unless there are clear and unambiguous reasons not to do so. And that limit stays in place unless the customer involved experiences a severe detrimental event. The limits are monitored continually and any change in status is immediately notified to the policyholder.

The trading limit may subsequently be raised based on satisfactory trading experience. So, by facilitating trading relationships with the right partners CIFS is aiming to help its insureds accelerate targeted growth.

First Limit is a cost effective way of establishing credit limits and, with the First Limit Plus option, insurance premiums that reflect the efficiency of the service.

The main features of this innovation from CIFS are:

• Simple Operation. Policyholders obtain an instant, online, “Yes/No” decision on limit requests and can trade immediately to the level of the agreed limit. A “No” decision will also give the reason for the declinature.
• Unlimited Usage. There is generally no restriction on the number of limit requests that can be made.
• Sales Empowerment. First Limit enables safe and profitable relationships with the right trading partners by excluding only those customers with the very highest risk of default. Policyholders may commence trading straightaway, with the opportunity to increase limits based on satisfactory trading experience or to apply via the system where a higher “available” limit is displayed.
• Continual monitoring of all limits– including positive adjustments to limits previously declined.
• Cost Effective. Charges are flexible and based on the shape of the business, with no “per decision” cost.
• Enhanced Claims. Simple, system-driven limit validation speeds up claims processing and settlement.
• Preferential Rates. For using the CIFS’ Integrated Collections Service as well.

In addition, policyholders who decide to use First Limit as their sole source of discretionary limit decisions will benefit from the First Limit Plus option which provides:

• The ability to offer higher limits – up to £10,000.
• Insurance premiums reflecting coverage of the whole sales ledger.
• Ledger up-load facility – giving an accurate picture of the entire customer base.