A5. All about the credit limit: monitoring risks

5. Monitoring the risks
Our risk analysts, each specialised in their own sector(s) of activity, constantly study the trends, assess the risks and decide on your credit limit requests. It is important that the amount of your credit limits corresponds as closely as possible to the actual outstanding balance.

5.1. How exactly do you do this?

• If the actual outstanding balance increases, apply for a credit limit increase. By the way, such an increase request is completely free of charge.
• If you stop doing business with a particular debtor, cancel the credit limit as well. You can do this yourself in Atrium and also save monitoring fees.
• If the actual outstanding balance drops, it's best to reduce the credit limit in Atrium.

If the debtor's solvency deteriorates, Atradius can at any time:

• reduce the credit limit;
• revoke all coverage on the debtor.

If you received a zero limit or your limit was revoked, but your debtor's solvency suddenly improves, we will inform you about the possibility of reapplying for a credit limit.

Reductions or withdrawals on our initiative only take effect 30 days after the date of the announcement, unless something else is stated on the limit appendix, or if something unexpected does occur during these 30 days. In that case, Atradius still retains the right to withdraw the credit limit immediately.

Such a withdrawal or reduction of the credit limit means that executed deliveries are covered for the amount of the previously authorised credit limit. In case of revocation, new deliveries after the revocation are no longer covered. In case of a reduction, keep an eye on the outstanding balance, especially for new deliveries, so that the new reduced credit limit amount is not exceeded.

What if the decision to revoke or reduce takes place while you still have outstanding orders in your portfolio, or in regular transactions? Then you provide us with all the useful information and, after examining the file, we can still agree to deliver under cover.

What useful information? The details of the agreed orders: amount, delivery dates, credit terms and payment terms, together with an account statement, or history up to one year prior to the date of withdrawal or reduction.

Atradius will review the debtor's file as soon as we receive information on its solvency. Therefore, after a negative opinion from us, we recommend that you enter into discussions with your debtor to weigh up the various options. Perhaps interim figures can provide a positive revision of coverage.