Credit Limit for Onboarding Client in Contract Staffing

Purpose: To mitigate the risk of credit exposure and to finalize the credit limits with insurer.

Effective from _ 31/10/2019

Applies to: All Clients for Contract Staffing

Policy Guidelines:

1. We have to ensure that below process is followed for NEW CLIENT ONBOARDING:

a) “Know your Customer” (KYC) to be filled by Sales/Am and share with Credit
controller/ Finance to get the credit limit approval from Insurer. This should be
submitted 5 to 10 days before signing the final contract.
b) Trade License copy of the Company should be submitted along with KYC to get
credit Limit approvals from Insurer.
c) We have to ensure that in the KYC we include the expected monthly turn over,
required to calculate the Credit limit.
d) AR team to upload client details on the Insurer’s Portal.
e) In case of any rejection, Credit controller and AVP finance to discuss with Insurer.
For further clarification Insurer can request client meeting, call or few
documents (Financials or other financial doc’s etc.).
f) In case there is permanent reject of limits from Insurer CFO & Bu head to take
call on onboarding the client.

2. We have to ensure that below process is followed for increase in the turnover and
credit limit.

a) AR Team has to review and compare the credit limits with the turn over every
15days, this is to ensure that we have sufficient credit limit against each client.
 b) Credit controller to mail sign off the below mention format of credit limit review
prepared by AR team.

Client Client Old Old Expected New

S.no Code Name Limit Turnover Turnover Limit
1
2
3

c) AR team to upload the revised (If any) on the Insurer portal.

d) AR Team to escalate to credit controller and AVP finance, If any request for
increase in credit limit is reject by Insurer.
e) In case of any rejection, Credit controller and AVP finance to discuss with Insurer.
For further clarification Insurer can request client meeting, call or few
documents (Financials or other financial doc’s etc.).
f) In case of rejection of increase in limits from Insurer CFO & Bu head to take call
on increasing the business with client.

3. Review Process

a) Credit controller has to review credit limits with AR team every 15 days.
b) Credit controller to review limits with AVP finance every month.
c) AVP finance to review credit limits with CFO every month.

S.No Person Reviewer Frequency

1 AR Team Credit Controller Every 15days
2 Credit Controller AVP Finance Every month
3 AVP Finance CFO Every Month

Signed By: - Signed By: -

Name: Richard Jackson Name: Rohit Sharma

Signature Signature
Date Date: