Credit insurance
Tel: 01424 217698 or 07971 996658 Fax: 0845 127 4385
Rycroft Associates

Discretionary Limit

- the limit you are allowed to go up to without reference to the insurer, however, it is unfortunately called the "DISCRETIONARY" limit, but it is anything but, whilst you have the discretion to grant credit, it must be based on some factual information (such as trading history or a bank report or a status report) and whatever system you have used to "justify" the credit given must be provided in order to get a claim paid - in simple terms - you must in the event of a claim be able to "justify" why you gave credit in the first place - ideally using third party information (a status report) or have "satisfactory" trading experience (i.e. the experience must justify the credit allowed).