Concentration Risk Management
CIT Concentration Risk Management is a flexible way to protect your company against credit risk inherent in your customer base.
Whether you are concerned about increasing customer concentrations, your entire receivables portfolio or risk associated with one or more specific customers, CIT can tailor a program to fit your needs.
By enhancing your customers' default risk, CIT provides your company with the tools needed to achieve risk management and financial objectives.
Concentration Risk Management can:
- Eliminate customer default risk
- Lower reserves for bad debt
- Improve cash flow and profitability
- Enhance shareholder value
How Concentration Risk Management works:
- CIT approves credit lines for your customers
- Your company retains the flexibility to choose which receivables are submitted for protection under approved credit lines
- If a customer is financially unable to pay, CIT assumes responsibility for payment on undisputed, approved invoices
The benefits of CIT Concentration Risk Management:
- It provides protection on approved customer receivables (net of charge backs, disputes, etc.)
- Your customers are not notified of CIT's involvement
- Your company maintains control over bookkeeping and collection functions. There is no deductible or mark-to-market required
- It provides greater frequency of claim payments
- It covers a broader number of customers than other sources of credit protection
The flexibility of CIT Concentration Risk Management:
- CIT can act as your company's sole provider of credit protection
- CIT can supplement amounts not covered by other forms of credit protection
- CIT can protect amounts that exceed internal credit limits