Reply To: Foret & Strong's credit rating & risk rating mismatch

leotyndall #10809

Dear Dr Offig,

The risk is not on the seller of the invoices but the obligor of the invoices, that is the debtor. The debtor is insured and has a risk profile that meets the >97% whilst the seller is as you have pointed out a higher risk.

Other than delivery of services, the risk should be low on the seller because after he delivers the goods, it is the purely the obligation of the debtor that will be enforced and accepted.

If there is a shortfall on a claim against the debtor we will claim against the insurance and also the seller.

Kind regards,