General. Accounts receivables are a critical component of HD Faculty™'s balance sheet – they directly affect its cash flow and profitability. Therefore, HD Faculty™ has made it a policy not to leave its most vulnerable assets open to loss and taking risks on bad debt write-off. Objective. HD Faculty™'s objective in this regard is to strengthen its business accounts receivable margining, through the acquisition or subscription of credit insurance coverage. Credit Enhancement. An Accounts receivable credit enhancement facility prevents HD Faculty™ from overtrading with any specific client or customer, as the Participating Institutions or Insurer may require approving potential major exposures. In addition, credit enhancement protects HD Faculty™ from sudden losses, and it ensures that HD Faculty™ has proper in-house credit and collection procedures in place. HD Faculty™ uses credit enhancement mechanisms to provide early detection of credit deterioration. It is employed as a monitoring mechanism to constantly probe prevailing situations of, and statutes of the respective Client, thereby relieving HD Faculty™'s participating creditor/banker from trying to continuously determine the current value of a given receivable. Policy Administration. Where HD Faculty™ undertakes to establish an accounts receivable insurance coverage in respect to a given creditor, banker, or investor, it shall ensure that once the insurance is in place that a copy of the policy is delivered to the respective creditor, banker, or investor, as the case may be. Benefits. Some of the noticeable benefits are: Protect HD Faculty™'s Receivables from an Unexpected Loss; Increase cash-flow dependability; and Increase HD Faculty™'s borrowing capacity.