Dhaman provides factoring companies with a comprehensive insurance solution that covers the risks of default of payment of the obligors. The factoring insurance service offered by Dhaman enable factoring companies to:
Avoid admission of risky operations.
Expand business through acceptance of larger transactions.
Increase volume of transactions without recourse.
Obtain a compensation up to 90% of the value of the insured invoices on both domestic and export transaction.
– Bankruptcy of the obligor
– Protracted default of the obligor
– Transfer restrictions
– War and civil disturbances
– Confiscation, Expropriation and Nationalization
– Public and governmental Entities default of payment
Only commercial risks are covered for the domestic factoring transactions.
Insured factoring company must be of Arab nationality or joint Arab – Foreign nationality.
Insured goods/ services must be Arab origin. Strategic goods/equipment of non- Arab origin are eligible for the insurance.
Absence of ownership or Joint management relationship between the insured factor & the obligor.