FOR IMPORTERS

ARE YOU AN IMPORTER THAT HAS RECEIVED AN INQUIRY TO PROVIDE DATA FROM CRA ANTARES?

The information below provides answers for the majority of Your questions concerning export insurance and reasons why we have contacted You.

 

WHAT IS THIS INQUIRY ABOUT?

  1. If you have received an inquiry to provide information about your company’s activities, this means that CRA ANTARES was mandated to collect information about Your company and to evaluate its creditworthiness, by foreign credit insurance corporation (further – “CIC”) or other financial institution.
  2. This investigation is related to export trade or project financing and its initiator is Your foreign supplier (potential supplier).
  3. Your counterparty-exporter is either already providing You with financing on payment deferment basis or intends to do so. As a result, your partner opens accounts receivable against You. In order to minimize non-redemption risks for provided trade credit, Your supplier has applied to CIC to receive insurance coverage (guarantees of repayment) of its trade receivables.
  4. For the purpose of making decision regarding provision of insurance coverage of exporter’s receivables, CIC collects information about counterparty-importer (Your company). For this examination, CIC uses trusted informational-rating agencies in country or region of importer’s incorporation. CRA ANTARES is such an agency in CIS region and Georgia. CRA ANTARES is authorized to carry out investigations by corresponding foreign economic contracts and directly by electronic inquiries that may be provided for familiarization at our office.
  5. Common flowchart of short-term trade financing with elements of export insurance is presented below for better understanding.
  6. What is CIC (credit insurance corporation)? CIC – is a state export-credit agency or private insurance corporation, the main activity of which is aimed at supporting export activities in exporter’s country of incorporation. CICs provide a wide range of services, associated with insurance of export supplies from different types of risks, including political, as well as with financing (partial financing) of foreign-trade operations.

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  1. Importer negotiates with Exporter regarding payment deferments.
  2. Exporter applies to CIC in order to receive an insurance coverage of its trade receivables against Importer.
  3. While evaluating the risks of providing insurance coverage, CIC calls upon CRA ANTARES to obtain information about Importer and assess its creditworthiness.
  4. CRA ANTARES sends an inquiry to Importer with a request to provide information.
  5. Importer provides information in accordance with an inquiry to CRA ANTARES.
  6. Specialists from CRA ANTARES carry out a detailed analysis of received information, evaluate Importer’s creditworthiness, prepare a credit report and send information to CIC.
  7. Upon collection of all the required information, members of credit committee in CIC make a decision regarding the provision of insurance coverage of Exporter’s trade receivables.
  8. Exporter supplies goods on payment deferment basis.

         You may get more information about services and peculiarities of CICs activities on web-pages of the largest CICs in the world:

         http://www.eulerhermes.com
         http://www.coface.com
         http://global.atradius.com

WHAT INFORMATION DO WE REQUEST AND WHEN DOES IT HAVE TO BE PROVIDED?

  1. List of inquired data is agreed with CIC and is sent to You along with official inquiry on behalf of CRA ANTARES CEO: general information about company’s activities, financial statements for the last several periods, information about payment discipline.
  2. Terms of information provision are stated in official inquiry that you receive from CRA ANTARES. Often CRA ANTARES has no more than 5 days to conduct an investigation that is stipulated by CIC. Considering the abovementioned, terms of information provision are usually 2-4 days.

WHAT WILL HAPPEN AFTER YOU PROVIDE INFORMATION?

  1. We prepare a credit report 
    Financial analysts, market analysts and legal advisors process obtained information. We ask additional questions (if required). We evaluate creditworthiness and provide recommendations regarding the volume of trade financing for your Company.
  2. Send credit report to CIC
  3. Credit report is examined by credit committee in CIC
    As soon as CIC receives credit report, the last is supplemented to the other information about Your company that was provided to CIC by your partner; later, the set of documents is introduced for consideration at a credit committee.
  4. CIC makes a decision regarding provision of insurance coverage
    During about two weeks, CIC makes a decision regarding the provision of insurance coverage of Your supplier’s receivables. In case of positive decision – the supplier will grant You with a trade credit.

WHAT WILL HAPPEN IF YOU DO NOT PROVIDE INFORMATION?

  1. We prepare a credit report 
    CRA ANTARES team gathers all the publicly available information about Your company, prepares credit report and evaluates creditworthiness. Our specialists mark out the fact that You refused to cooperate, specifying the reason.
  2. Send credit report to CIC
  3. Credit report is examined by credit committee in CIC
    Your company is being examined more thoroughly by credit committee in CIC or is not examined at all, thus the refusal to cooperate proclaims non-transparency of Your business activities. This fact always negatively influences the final decision concerning provision of insurance coverage and as a result may restrict Your access to the trade credits (payment deferments) from Your foreign partners.

HOW MUCH DOES IT COST?

  • Free of charge. CRA ANTARES has an agreement with CIC, which pays for the investigation.

WHY HASN’T MY SUPPLIER INFORMED ME?

  • Often, exporters are not eager to inform its counterparties about insurance of receivables towards them. Firstly, the majority of foreign economic contracts do not oblige exporters to report about insurance of receivables. Secondly, CICs services are not free, thus, usually, exporters include the price of the abovementioned services in the final price for goods whereof not willing to informing a buyer.

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Information presented on this page provides answers to the most common questions and describes the main reasons for receiving an inquiry for importer’s creditworthiness evaluation from CRA ANTARES. Obviously, foreign CICs offer much more products and services that may be the reason of receiving an inquiry to provide information. To avoid information oversaturation on this page and to optimize the understanding of CRA ANTARES activities we intentionally omit the detailed description of CICs’ services.

In case, the provided information does not give an answer to your questions, Your company might have been participating in more complex schemes of attracting financing or if You have additional questions – CRA ANTARES specialists are ready to discuss them and share their experience at any time convenient for You

Contact us using the information at CONTACT US