Glossary

Insurance, in addition to manufacturing and credit risk coverage against the risk that the buyer or its bank wrongly calls a bank guarantee.

Insurance for contracting work against the risk of failure to reimburse costs incurred due to failure to issue all certificates and against the risk that, despite the issue of certificates, the portions of the contract sum due are not paid.

Atradius has a guideline for agent fees based on national policy. A fee may not exceed 5% of (your share of) the contract price with a total value not exceeding EUR 4.5 million. For smaller transactions (with a maximum contract value of EUR 5 million), the 5% maximum does not apply. A higher percentage may be assessed as acceptable if the absolute amount does not exceed EUR 250,000. If the agreement with your agent is not in line with the above guideline, the transaction is in principle not insurable, unless based on enhanced due diligence performed by Atradius the risk of bribery is deemed acceptable.

International agreements in the OECD context to reduce anti-competitive effects of state aid, subsidies and financing.

The Berne Union brings together credit and investment insurance institutions that insure both the default risk and country risk associated with international goods and services transactions.

A payment arrangement with a debtor country that may involve both the setting of new due dates for payments and the cancellation of debts or portions thereof.

A stand-alone guarantee, or an addition to an Additional Coverage or Independent Guarantee Coverage, where Atradius undertakes on behalf of the State to reimburse the guaranteeing bank for amounts paid to the buyer. This increases your credit margin.

A (state) export credit insurer (also called Export Credit Agency or ECA) insures the risk of default by buyers in export transactions on behalf of the government . We can also insure the foreign buyer's bank, if it provides a loan allowing it to buy goods and/or services on credit from Dutch exporters.

This is the risk that the buyer or borrower will not meet its financial obligations. Commitment to cover Undertaking by Atradius to issue a policy on behalf of the State. This gives you certainty about which payment risks will be covered when the contract comes into force within the agreed period during negotiations on the terms with the bank or the buyer.

Commitment by Atradius to issue a policy on behalf of the State. In this way, while negotiating the terms and conditions with the bank or buyer, you already have certainty about which payment risks will be covered when the contract comes into force within the agreed time.

An irrevocable commitment by Atradius on behalf of the State to a discounting or accreditation-negotiating bank to pay out, in the event under bills of exchange, promissory notes or irrevocable accredits have not been paid within the applicable waiting period.

A guarantee to a bank (re)financier providing an export credit.

The risk that you as exporter will not receive payment from or on behalf of the buyer for the costs you incur
for the purpose of establishing and executing the export contract, to the extent that you do not supply the buyer.

Insurance against the risk that a bank financing an export transaction does not receive payment from the borrower.

A force majeure situation, which prevents performance of the contract.

Insurance against the risk of a bank guarantee being requested by the buyer or its bank.

This insurance covers losses from investments in enterprises abroad due to expropriation, war, transfer obstacles and breach of contract.

Insurance to an exporter bidding in foreign currency for the risk of currency exchange rate changes during the bidding period.

The risk arising from an exporter not receiving the stipulated purchase price, not receiving it in full or only receiving it with a long delay.

Country risk depends on the destination country and includes both political risks (e.g., transfer barriers, riots or war) and catastrophe risks (e.g., natural disasters such as storms, earthquakes and epidemics).

Insurance against payment risk for leased capital assets (finance lease), with all terms covered.

Insurance against payment risk for leased capital assets, usually covering only the first nine months.

Transactions with credit terms longer than 12 months (delivery of capital goods) or execution terms longer than 12 months (execution of contract works).

The difference between the contract price and the price of goods and services sourced from abroad. The national component must be at least 20% of the contract price. If the national component is lower, but at least 15%, then any (supplies) by foreign group companies of the exporter may be added to the national component to reach the minimum of 20%, provided that the parent company of the foreign group company(ies) in question is located in the Netherlands.

See force majeure.

Payments you receive as exporter during the performance period of a contract from a loan for which Atradius, on behalf of the State, has issued to the financing bank a Financing Policy
has issued.

See Continued non-payment.

Payments for claims for which an insured has already received claims payments.

Recourse is the recovery of losses from a third party. If Atradius pays damages to a bank and wants to recover them from an exporter, we speak of recourse. This can occur if Atradius has paid damages under a financing policy to the bank, or has paid an unpaid bill of exchange or, in retrospect, has wrongly advanced funds. These are very rare situations. A regress situation can also occur if Atradius pays damages to the bank under a counter guarantee. Then Atradius recovers the loss incurred from you as the exporter.

Continued non-payment (protracted default) occurs when the buyer has not yet fulfilled its payment obligations after the expiration of the waiting period, absent a dispute or an identifiable political or commercial cause of loss.

Insurance to a bank against the risk of not receiving back the working capital it has provided to an exporter.

Period between the due date of the claim and the time when an insured can claim.

Insurance to an exporter against the risk that the buyer or its bank wrongly calls a bank guarantee and the guaranteeing bank thereby has recourse against the exporter.