4. Choosing a credit limit
There are different types of credit limits. Which types you can/are allowed to use can be found in the policy.
4.1. The Start Cover limit
You apply for a Start Cover limit in Atrium for the desired amount. A maximum amount is set in the policy, but you can request lower amounts. You will receive a decision immediately.
For the Start Cover limit:
- application based on unique identification number or Atradius number;
- up to a maximum amount found in your policy;
- at a lower annual cost than an assessment or credit limit;
- only on those countries included under Start Cover in your policy;
- automatic decision based on the prevailing buyer rating without further explanation;
- decision (full acceptance or refusal) on the screen without limit appendix;
- the percentage covered is lower than with a credit limit or test and can be found in your policy;
- that we are more lenient in acceptance than in testing or credit limit, the aim is only to avoid problematic debtors.
4.2. The review
You apply for a review in Atrium and get an immediate answer: positive or negative. As an exception, you cannot request a test. It is best to submit an ordinary credit limit application.
For the review:
- application based on unique identification number or Atradius number;
- for a fixed amount found in your policy;
- At a lower cost than a credit limit;
- decision (positive or negative) without further explanation;
- decision on screen without limit appendix.
4.3. The credit limit
If you need a higher amount than a Start Cover or review, or if a review is exceptionally not possible, then apply for a credit limit in Atrium. With a credit limit, there are numerous options, both in the application and in the decision.
- When applying, you can:
- upload payment experience or other useful information such as annual figures of the debtor;
- indicate that the analyst may contact the debtor for information and add the contact details. You can suddenly give permission for your name as supplier to be included here, which often encourages the debtor to cooperate;
- add your own comments useful to the analyst. In English because the limit is usually decided by an analyst in the debtor's country.
- In making the decision, the analyst may:
- accept full or partial coverage, or refuse the limit;
- temporarily accept the cover;
- add conditions;
- give explanations.
For the credit limit:
- de beslissing wordt schriftelijk bevestigd met een limietaanhangsel;
- dat je de voorwaarden en toelichtingen altijd zorgvuldig bekijkt zodat je er rekening mee houdt en er, indien nodig, je werkwijze aan aanpast.
4.3.1. Self assessment for unrated debtors
This option, also called the blind cover, allows you to grant a credit limit to your debtors yourself for a fixed amount and only for those countries defined in the policy
For blind coverage, you do not yet need experience with the debtor.
In particular, you must not have any negative experience, or know of any negative information about your debtor's financial situation, reputation or ability to pay. The percentage covered is lower than the percentage for the other credit limit forms and can be found in the policy.
Make sure you are well aware of who you are dealing with. Check the identity against the unique registration number so you can fall back on the insurance should the need arise.
4.4. Self-assessment based on payment experience
This form of self-assessment allows you to grant a credit limit to your debtors for a fixed amount and only for those countries specified in the policy.
You can use the self-assessed credit limit with positive payment experience if at least two deliveries on credit have been paid on time in the 12 months preceding the date of the new delivery or service (the start of the cover).
Of course, it is about all invoices on credit during those 12 months, but 2 is the minimum.
'Timely' for Atradius means: before the expiry of the maximum extension period you find in the policy.
This form of cover requires strict monitoring and is a good option for debtors you do business with on a fairly regular basis.
The percentage covered is the same as for debtors covered by a credit limit.
You always load the payment history at the collection transfer. Based on that payment history with all transactions during the 12 months preceding the oldest submitted invoice, coverage is determined.
About this type of self-assessment, Liesbeth made a clear video, watch it here.
4.5. Self assessment based on credit information reports
This form of self-assessment allows you to grant a credit limit to your debtors for an amount and for countries specified in the policy.
The credit limit based on credit information reports can only be used in combination with a credit information report from the credit information bureau(s) included in the policy. These reports give a score in a certain way. The conditions for determining whether you can allow the credit limit can be found in the policy.
The information report is valid for one year and you request it before the date of delivery or service (start of cover). You keep this information report with that original date, as you will need it in case of any damage. You request a new report annually for the debtors concerned.
The percentage covered is the same as for debtors covered by a credit limit.
You load the information report with the original date at the collection transfer. Based on the date and the information in that report, the coverage rate is determined.
4.6. When is the self-assessment not applicable?
You cannot use the self-assessment (unassessed or not):
- on debtors for which you have already received a limit decision. This may be about an acceptance, refusal or withdrawal of a credit limit, review or Start Cover. In other words, if you have a credit limit decision (acceptance, refusal or revocation) from us, then any self-assessment expires. After a 0-limit or withdrawal, you can reapply the self-assessment after 12 months.
- on debtors in a country not eligible for self-assessment or unassessed debtors according to the country list in the policy.
- if you have unfavourable information about the debtor's financial situation, financial reputation or payment capabilities.
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