TERMS AND CONDITIONS: REGISTRATION AND DECLARATION


This document only outlines the terms in the insurance policy. It is not representative of the actual policy document, and could therefore not be used in its stead. This document contains privileged and confidential information and is sent for the sole use of the intended recipient. If you are not the intended recipient, please contact info@vesltradefinance.com immediately by email and destroy all copies of the original document.

GENERAL DETAILS

Managing Insured: Vesl Pte Ltd
Co-Insured/Joint Insured: Registered Users of Vesl
Insurer and Risk Service Provider: Euler Hermes Singapore Branch (Singapore)
BPI/MS Insurance Corporation (Philippines)
Collection Service Provider: Euler Hermes Singapore Services Pte. Ltd.
Standard and Poor’s Rating of Insurer: AA

COVERAGE CONDITIONS

Transaction Minimum Value: USD 10,000.00 or equivalent
Maximum Terms of Payment: 120 days
Maximum extension period (MEP): 60 days from original due date
Non-payment Notification Period (NPN): 30 days after Buyer enters into a State of Default
Claims and collections filing period: 30 days from end of MEP
Waiting Period for Protracted Default: Depends on buyer’s country (150 days for PH)

THE MANAGING INSURED

The Managing Insured shall have the rights to obtain, manage and administer the Co-insured’s credit insurance policies on their behalf. This shall include, but shall not be limited to:

  • Handling and submission of claims.
  • Implementing changes to, amending and/or cancelling such credit insurance policies with no prior notice;
  • Implementing changes to, amending and/or cancelling any features of such credit insurance policies with no prior notice;
  • and by registering as a user of the Platform, the Co-insured appoints and authorizes Vesl to do so on their behalf with respect to any applicable credit insurance policies provided to them as part of the Services on the Platform.

POLICY TIMELINE

SCOPE OF COVERAGE

  • Indemnity - up to 90% of the insured debt will be covered.
  • Protection from insolvency, protracted default, and political risk
  • Maximum Liability: from USD 3,250,000.00*
*Maximum liability is continuously updated throughout the policy period, which will be available for viewing to all registered users and loss payees.

For indebtedness to contribute to an Insured Debt, it must be invoiced within 30 days of the date the goods were Despatched and/or services were Provided.

WHAT’S COVERED?

Vesl’s bite-size scheme covers your business against the risk of non-payment if the buyer becomes insolvent or when a protracted default has occurred. For exports, political risk is also covered.

  • Indemnity: up to 90% of the invoice value will be covered.
  • Protection from insolvency, protracted default, and political risk

WHAT’S NOT COVERED?

Unless otherwise endorsed, a receivable resulting from the following circumstances are not covered:

  • Pre-credit risk, consignment stock, retention payments
  • Disputes; advance payments; cash on delivery business; private individuals; public buyers;
  • Invoices arising from contractual or legal damages or penalties, exchange rate fluctuations, currency devaluations, interest on late payment, or banking or financial charges, or - a leasing, rental, license or royalty agreement;
  • The buyer’s failure to accept your supply of goods or services whether disputed or not,
  • Transfer of payment obligation from your buyer to a third party without prior notice to us
  • Transactions conducted with any Buyer over which you have significant control, by participation in its management, administration or capital, which has similar control over you, or which is part of the same group as you
  • Natural disasters; Radioactive contamination

FEES

Service Fee The service fee which includes the premium per transaction is to be paid in full via Vesl’s platform. This is a non-refundable fixed price (%) on the value of the transactions submitted, paid per transaction.
Credit Assessment of Buyers Paid by Seller per Buyer directly to Vesl or Vesl’s payment partners
  • USD 100.00 paid upfront (or the equivalent in other currencies)
  • For every approved limit, a USD 50 discount will be applied to the next credit assessment
Please note the Buyer’s approved credit limit holds true for either 1 year from decision date or upon expiry of the insurance policy, whichever is earlier. The insurance policy is automatically renewed every year. If the case is otherwise, the co-insured will be informed of the policy’s expiry at least 3 months prior.
Fees Related to Debt Collection Agreement (DCA) 20% of the amount collected (estimated)
Administrative Fees Paid by Seller and applied to all payments made directly to Vesl or through Vesl’ payment partners when applicable.

RESPONSIBILITIES OF THE CO-INSURED

The Co-Insured shall:

  • Comply with all the Platform Terms of Use and Policy Terms and Conditions.
  • Shall act in the normal course of business as if it is not insured.
  • Warrant that the details of the policy remain confidential and are not disclosed to its buyers
  • Make sure all information and documents submitted are complete, true, and honest.
  • Ensure that the Declaration form and Endorsements are signed by the Co-Insured’s authorized signatory.
  • Provide all documents and additional information as requested by the insurance provider.
  • Inform and communicate with the Managing Insured the status of all invoices, i.e. immediately inform the Managing Insured if an invoice is still not paid a day after the MEP, and communicate the reasons for delay.
  • Notify all matters about its buyers, especially about insolvency and bankruptcy, as it happens.
  • Record and document all forms of follow-ups and communication with its buyers, especially during the collection.

GLOSSARY OF TERMS

  • Approved Limit - the maximum amount covered for a Buyer under the Policy as specified in the limit notification issued by us.
  • Buyer - the legal entity legally responsible for paying for the goods Despatched and/or services provided by you.
  • Indemnity – represents the percentage of the bad debt that the insurer will pay out on the successful claim, subject to a valid Credit Check.
  • Insured Debt - the amount owing to you from the Buyer provided that the Buyer (1) is located in a country listed in the Special Terms (can be requested separately) (2) the goods are Despatched and services are Provided during the Insurance Period and relate to your Description of Trade in the platform (3) the contractual terms of payment of the debt do not exceed the relevant Maximum Terms Of Payment. The Insured Debt is restricted to the amount of the Approved Limit.
  • Insured Percentage- the percentage stated in the Special Terms which is applied to the Insured Loss for the calculation of the indemnity.
  • Maximum Extension Period - the maximum period specified in the Special Terms by which you can postpone the original due date for payment of the Insured Debt.
  • Maximum Liability - the maximum amount of claims payments that the insurer will pay out for all joint insured during the policy period (i.e. 12 months).
  • Maximum Terms of Payment - the maximum contractual period that you may agree for payment from the Buyer of the Insured Debt.
  • Protracted Default – occurs on the non-payment of all or part of an undisputed Insured Debt on expiry of the Waiting Period Provide or Provided.
  • Terms of Payment – the payment term extended to the Buyer which is shown on your invoices. The maximum payment terms allowed under this policy is 120 days from invoice date.
  • Waiting Period - the relevant period stated in the Special Terms, which runs from the date of receipt of the completed non-payment notification together with any additional documents or information that we require.

This document only outlines the terms in the insurance policy. It is not representative of the actual policy document, and could therefore not be used in its stead. This document contains privileged and confidential information and is sent for the sole use of the intended recipient. If you are not the intended recipient, please contact info@vesltradefinance.com immediately by email and destroy all copies of the original document.