Date of loss
Also called claim date. This is the date of insolvency or protracted default. In the case of protractive default, it is the date on which the waiting period expires.
Debtor
This is the company to whom you sell goods or for whom you perform services and work and who owes you money as a result.
Declaration period
The period, usually equal to the policy year, used to determine the results under the policy (premium and claims figures).
Deferral of due date (= deferred filing)
Postponement of the originally agreed due date of an invoice, within the maximum extension period (MEP) allowed and defined in the policy schedule.
Discretionary credit limits
The credit limits you can set yourself based on the discretionary option(s) included in the policy, such as, for example, 'Discretionary credit limits by payment experience'. The amount is specified in the policy.
Discretionary credit limit by credit reports
You can set your own credit limit based on a credit information report if obtained from a credit information agency approved in your policy. That report must not contain unfavourable information and must justify the required credit limit amount by amount or rating without reservation.
You must not have suffered a loss due to default on that debtor in the 12 months before the cover takes effect.
A credit limit determined on the basis of credit information reports is valid for a period of 12 months from the date of the report and cannot exceed the amount of the discretionary credit limit as stated in the policy schedule.
If at any time a credit limit (including a zero limit) is issued by Atradius, the discretionary credit limit will expire. However, know that, 12 months after the date of the zero decision, you can rebuild cover under the discretionary credit limit option.
Discretionary credit limit by payment experience
You can set your own credit limit based on your own payment experience with a buyer. The credit limit is equal to the amount shown in the policy schedule under discretionary credit limit, if you have made at least 2 deliveries on credit during the 12 months preceding the cover and received the payments within the maximum extension period. You must not have suffered any loss due to default on that debtor during those 12 months.
A credit limit established on the basis of payment experience can only be used for transactions with the same or shorter payment terms as the transactions on which the payment experience is based and cannot exceed the amount of the discretionary credit limit as stated in the policy schedule.
If at any time a credit limit (including a zero limit) is issued by Atradius, the credit limit established by discretion will expire. However, know that, 12 months after the date of the decision zero limit, you can rebuild cover under the discretionary credit limit option.
Discretionary credit limits for non-vetted buyers
When indicated in the Schedule of Countries, you can set your own credit limit for debtors in those countries up to the non-vetted credit limit amount mentioned in the policy schedule. The following conditions shall apply: a) you must have established the correct identity of the buyer and must not be aware of any unfavorable information regarding the buyer's financial position, reputation or debt payment performance. b) the insured percentage will be reduced to the insured percentage for non-vetted buyers as specified in the policy schedule and c) any credit limit decision (including zero limits) shall with effect from the date of the credit limit decision override the non-vetted buyer facility. However, where we have issued a zero limit, you may again establish a credit limit yourself, but such a discretionary credit limit shall only apply where cover commences no earlier than 12 months after the effective date of the most recent zero limit.
Dispute
See queried invoices
DSO
This stands for Days Sales Outstanding. This is a financial ratio used to measure the average time it takes a company to collect outstanding invoices. DSO is an important measure for managing a company's accounts receivable management and liquidity. It is usually expressed in days.