Cancellation of a credit limit
Decision to withdraw the credit limit you have for a particular customer. Goods already delivered and services performed remain insured.
Cash against documents
CAD, also known as Documents Against Payment (D/P), is a term used in international trade to describe a payment arrangement between a buyer and a seller. It is a method in which the seller releases documents relating to the shipment of goods to the buyer in exchange for immediate payment.
Cash on delivery
A delivery where payment will be made against delivery of the goods.
Cash sales
Transactions where goods or services are bought and paid for directly in cash.
Cheque
A written, unconditional instruction to a bank to pay the named amount directly to the payee. Risk with cheques is that the payment can be reversed by the bank if debtor has insufficient balance. So as long as this is possible, a cheque does not give you any payment security. No longer really in use in Belgium, but still occurs abroad.
CILC
Confirmed Irrevocable Letter of Credit, or a confirmed irrevocable documentary credit is a financial instrument often used in international trade to arrange payment between a buyer and a seller. This provides the seller with additional security and confidence in the payment, as it is not only irrevocable (cannot be withdrawn without mutual consent), but also confirmed by a second bank, which is willing to make the payment to the seller once the required documentary conditions are met. This is especially important in international transactions where the seller may not be familiar with the buyer and his payment history and where there is potential risk of non-payment.
Claim
Bad debt for which compensation is paid on claim date.
Claim threshold
We do not compensate claims for losses on a debtor that are less than or equal to the amount of the 'claim threshold' as stated in the policy schedule, valid on the claim date. However, claims, or parts thereof, that are lower than the amount of the 'claim threshold' are included in the turnover statement.
Claims to premium ratio
Indicates the ratio of claims paid to premium received. Is determined as follows: the claims payments allowed by us minus our share of the amounts recovered after the date of loss in the declaration period divided by the premium due over the declaration/measurement period (excluding any insurance tax).
Co-insured
A company included in your policy that uses the policy in addition to you as the principal insured. All policy terms and conditions apply to the co-insured under your responsibility.
Collection
An outstanding debt is collected from a debtor by a (court) bailiff, lawyer or collection agency on your behalf. Collection costs are then often charged for this. With most policies, Atradius Collections is the default collection service provider.
Collection costs
The costs incurred in debt collection to recover an unpaid debt from a debtor. Through Atradius Collections, collection costs are first recovered, to the extent possible, from the debtor. If the costs cannot be recovered, you have to pay them yourself.
However, we cover collection costs to the extent the claim is covered, up to a maximum of 100%.
Collection submission
Filing an unpaid claim or applying for your compensation: no later than 30 days after the maximum extension period has expired.
Commercial risk
The risk of a deterioration in a debtor's financial situation or creditworthiness, which often leads to default on payments by or even insolvency of that debtor.
Confirmed irrevocable documentary credit (CILC)
See CILC. Confirmed Irrevocable Letter of Credit, or a confirmed irrevocable documentary credit is a financial instrument often used in international trade to arrange payment between a buyer and a seller. This provides the seller with additional security and confidence in the payment, as it is not only irrevocable (cannot be withdrawn without mutual consent), but also confirmed by a second bank, which is willing to make the payment to the seller once the required documentary conditions are met. This is especially important in international transactions where the seller may not be familiar with the buyer and his payment history and where there is potential risk of non-payment.
Consignment
Consignment is a business arrangement where a seller delivers its goods to a third party and places these goods in the consignee's inventory for sale to customers. The main feature of consignment is that the owner of the goods retains ownership until they are actually sold to an end customer. Basically, for the seller, it is inventory held elsewhere.
Continuation of cover
If we have revoked or reduced a Credit Limit or terminated cover in respect of the Debtor's country, you may request us to allow the cover to continue to apply in very specific cases.
If we give our written approval, the cover will apply to these contracts.
If we do not approve your request, losses arising from your failure to execute these contracts will still be covered under certain conditions.
A more complete description can be found in the policy documents.
Contribution to costs
We contribute to the costs you incur to prevent and reduce losses or in collecting the amount owed by the debtor. If the debtor does not pay because he disputes the invoice and you prove to us that the dispute is unfounded and the real reason for non-payment is the debtor's financial situation, we will still contribute to the costs. Insofar as you incur these costs with our approval in resolving the dispute with your debtor and as soon as and to the extent the dispute is decided in your favour.
Covered causes of loss
If such a cause results in a claim, we will assess and pay compensation. If a cause of loss other than what we have mentioned in the policy occurs, we will not pay out. The covered causes of loss are insolvency, protracted default and, if included in the policy, political risk.
Credit check
This is a simplified credit limit application. Instead of specifying a desired amount you want cover for, Atrium always does an automatic check to see if we can provide that standard cover. You get a positive or negative review. This simple set-up also means the application fee is lower than for a credit limit. The amount of the credit check is clearly mentioned in the policy.
Credit check amount
Indicates the amount for which you can do a credit check.
Credit limit
The amount indicating Atradius' maximum acceptable risk per debtor.
When you submit an application, you specify the amount required. The amount must cover the maximum outstanding invoice amount on that debtor. The amount issued by Atradius appears on the credit limit decision and is also listed in Atrium.
Credit limit cost
For the credit limits you apply for with Atradius, you have to pay credit limit fees. These charges are clearly shown in a fee schedule. These are net amounts, excluding any tax which, if due, will be included in the invoice.
Credit risk
Credit risk cover starts when goods are delivered as soon as the goods are dispatched. Shipment is deemed to have taken place when you relinquish power of disposal over the goods: i.e. you can no longer access them.
When providing services or work, the credit risk coverage starts as soon as the invoice for the services rendered or work performed was sent to the debtor.
Customer Service Centre (CSC)
Your permanent point of contact for all questions regarding the day-to-day management of your credit insurance policy.