CST OVERVIEW
RETAIL CREDIT INSURANCE
TRADE CREDIT INSURANCE
CST FOR LOANS
INSURANCE BROKERAGE:
BAD DEBTS

CST OVERVIEW.

CST group of companies is a multi-services enterprise deeply involved in the insurance and financial circuits.

Our services extend from retail and trade credit insurance management (third party administrators), to marketing of financial products, finance of retail and corporate; insurance consultancy and brokerage.

Our team of professionals is totally dedicated to provide the best available service.

What is Credit Insurance

Credit Insurance provides protection for the repayment of loans made by financial institutions or traders, following the borrower insolvency or payment default.
This type of scheme usually applies to personal loans or loans granted in order to buy houses, cars, domestic appliances, furniture etc...
Credit Insurance can also provide protection to the wholesaler granting credit facilities to retailers or distributors.

Importance of Credit Insurance and advantages to the lending institution

Credit Insurance provides tranquility to the Insured, in a manner that he can rest assured that any payment default from the part of his customers, will be dealt in a proper way guarantying a reimbursement of the debt. The Insured also saves money and time while dealing with unpaid bills; he does not have to worry about legal and practical aspects related to recoveries, seizures etc..,

RETAIL CREDIT INSURANCE

What is Credit Insurance

  • Credit Insurance is a HEDGE made by banks, Financial Institutions and Traders against credit losses.
  • Credit Insurance provides PROTECTION for the repayment of loans made by Banks, financial institutions or traders, following the borrower’s insolvency or PAYMENT DEFAULT.

What Does Retail Credit Insurance Cover

  • Car Loans
  • Personal Loans
  • Credit Cards
  • Consumer Loans

Advantages To The Insured

  • Provisions:

When granting retail loans, provision rates shall be considered as Corporate, due to the fact that Insured will then be bearing the Insurance company’s risk instead of the individual’s debtor risk(Basel 2).

  • Reserves:

When coming to defaults, the insurance company will Indemnify the Insured before reaching 90 days of defaults. Consequently the Insured will not be bound to hold reserves on defaulted debtors after reaching 90 days of defaults (Basel 3).

  • No Worry About Legal Aspects:

The Insured will save all managerial and legal cost after the 90 days of default, considering that collection and legal actions will then become the insurance company’s responsibility.

HOW IT WORKS (Policy Issuance)

  • Insured will fill a proposal form Related to Types of Loans he wishes to insure.
  • Insurance Company will study the proposal form and provide the Insured with an offer.
  • Insured accepts the offer.
  • Insurance Company Issues the policy.

HOW it Works (Underwriting)

  • Insured sends loans applications to Insurance Company (Daily).
  • Insurance Company sends appraisal document Accepting Or Rejecting the Application (Daily).
  • Insurance Company sends a report of all accepted applications (Monthly).
  • Insured returns the report stating executed Loans. (Monthly).
  • Insurance Company issues invoice on executed Loans (Monthly).
  • Insured settles the premiums (Monthly).

How It Works (Claims)

  • Insured provides the Insurance Company with a list of delayed customers (weekly).
  • Insured provide the Insurance company with a Claim Declaration and supporting documents (when default reaches 60 days).
  • Insurance Company accepts and settles the claim, either by settling the due amounts and substitute the defaulter with commitment to settle undue installments on due dates. OR settles all the remaining amount of the loan after deducting the interest on the remaining period.
  • Insured will transfer the subrogation rights on accepted claims to the Insurance company and provide it with a power of attorney.

TRADE CREDIT INSURANCE

Trade credit insurance provides protection of accounts receivable (sales to buyers on credit) from losses due to credit risks, such as default, insolvency and bankruptcy.

Cover is up to 90% of invoices value.

The buyers can be in the same country of the insured business (domestic trade) or in another country (export).

The main purpose of the trade credit insurance is to transfer the risk of payment default to the insurance companies so the business can be more involved in trading and marketing.

Defaults can lead to catastrophic results on businesses:

- Dependency on clients payment behaviors.

- Burden in trying to collect overdue invoices.

- Liquidity and cash flow difficulties.

- Credit Losses due to unpaid invoices.

- Difficulty to be granted loans from banks.

Policy and Credit Limits

• Merchant fills-in the customer application, describing the business, the sales , the buyers, etc.
• CST issues the offer to the client.
• Signature of trade credit insurance policy between the merchant, the insurer & CST.
• Merchant sends buyers’ applications to CST
• CST provides the “credit limit advices” per buyer
 

 Production and defaults

• Merchant reports sales and payment delays on monthly basis
• Merchant declares a claim two months following invoice due date (Or payment extension period)
• CST provides a claim’s decision within two months following receipt of declaration and documents
• The insurance company settles the claim within two months of claim’s acceptance
• Rights of insured subrogated to insurance company – CST handles the recovery process
 

Benefits of credit insurance

- Protection against losses due to insolvency.

- Protection against losses due to default.

- Negotiating better rates and limits with banks.

- Investigation and assessment of the credit worthiness of new customers.

- Continuous monitoring of existing customers credit worthiness.  

 

 

 

 

 
 

CST FOR LOANS

Last born of CST group of companies, CST for loans was established mid 2010, completing the range of services offered by the CST group of companies. 

CST for Loans is a commercial vehicle aimed to lend small amounts of money (micro loans) to small entrepreneurs and consumers. "CST for Loans" is also involved in the lending to small enterprises.

 

INSTALLMENTS AND INSURANCE

Installments and Insurance Lebanon was created in 2001, with the Aim of providing personalized services in the general insurance field. I&I also caters to companies and banks willing to benefit from professional advices in the following specialized insurance lines:

  • Credit Insurance
  • Life insurance
  • Money insurance
  • Contractors all risks
  • Marine & Hull Insurance
  • Property insurance
  • Motor Insurance

 

 

Further to I&I success on the Lebanese market, I&I Jordan was created in November 2010, with the Aim of providing personalized services in the general insurance field. I&I also caters to companies and banks willing to benefit from professional advices in the following specialized insurance lines:

  • Credit Insurance
  • Money insurance
  • Contractors all risks
  • Marine & Hull Insurance
  • Property insurance
  • Motor Insurance

 

BAD DEBTS COLLECTION: DEBT HUNTERS

Companies, retailers and small businesses who want to focus on their core business have understood the relevance of externalizing the management of their unpaid bills or bad debts.

CS& T combines today a unique know-how regarding Debt collection and logistics facilities to offer a wide and tailored range of high value services to our customers.Companies, retailers and small businesses who want to focus on their core business have understood the relevance of externalizing the management of their unpaid bills or bad debts. CS& T combines today a unique know-how regarding Debt collection and logistics facilities to offer a wide and tailored range of high value services to our customers.

 

Bad Debts Collection: Debt Hunters

Companies, retailers and small businesses who want to focus on their core business have understood the relevance of externalizing the management of their unpaid bills or bad debts.

CS& T combines today a unique know-how regarding Debt collection and logistics facilities to offer a wide and tailored range of high value services to our customers. Read More

Insurance Brokerage: Insurance Protection (Car insurance, Life insurance etc…)

Personalized service and advice: all lines of insurance. Read More

BILL
Trade credit insurance: Coverage of unpaid bills.

Small Businesses.Read More