::Glossary (C)::

a b c d e f g h i j k l m n o p q r s t u v w x y z

Captive Policy A re-insurance agreement where the Insurer re-insures the in-house Credit Insurance policies of large corporations.

Catastrophe Cover A general term used to describe a policy incorporating a substantial First Loss. Credit Control practice and procedures will need to be first class if they are to reap the benefit of this type of cover,

Commercial Risk The risk of Insolvency or Protracted Default by a buyer. This may include the failure to accept goods in export sales (each policy will need to be individually inspected).

Company Number When an individual Limited Company is formed it is given a Company Number, individual to itself, which it keeps even if it changes its name, until dissolved. This number is also referred to as the Registration Number.

Compulsary Liquidation The liquidation of a company ordered by the Court, as a result of a petition presented to the Court by a Creditor or Director.

Confirmation of Debt A statement of undisputed admission, usually given by an Insolvency Practitioner, confirming that the debt(s) on which a claim is based exists in the books of the buyer concerned; identifying the creditor and the amount of the debt.

Confirmed Irrevocable Letter of Credit The most secure form of documentary credit, where a Bank in the Exporter's country assumes the payment obligation of the issuing Bank by adding it's confirmation.

Creditor's Voluntary Liquidation The liquidation of an insolvent company, which is commenced by resolution of the shareholders, but where the creditor's have ulitmate choice of Liquidator.

Current Assets Cash, or other assets readily converted into cash. For example, stocks, debtors and short term investments.

Current Liabilities Amounts which fall due for payment within 12 months of the Balance Sheet date (e.g. creditors, bank overdrafts, current taxation, etc).

Current Ratio A calculation made to show the strength of the working capital position. This is obtained by dividing Current Assets by Current Liabilites. The higher the ratio in favour of those assets, the greater protection for trade creditors.