How can this happen?
The principle of credit insurance is simple: credit insurance covers the non-payment risk when companies can no longer pay their invoices due to bankruptcy or (suspected) insolvency. Credit insurers base their assessment largely on available and up-to-date financial information. If your annual figures are missing or outdated, this could result in a lower or even revoked credit limit. With all its consequences.
What can you do?
Do you get an unexpected message that your business is not creditworthy or a request to pay in advance? Then you'll want to take these steps immediately:
- Submit your annual figures to the Chamber of Commerce as soon as possible
This is an important source for credit reports and insurers' assessment of credit limits. - Ask your supplier if he is insured and with which insurer
Xolv can play an intermediary role towards the credit insurer. When, as a debtor, you yourself provide insight into your figures and situation, in practice more often turns out to be possible than previously thought. In many cases, coverage can be (partially) restored.
Xolv thinks with you
Are you facing prepayments from a new or existing supplier? Contact your account manager at Xolv and we will be happy to help you find a suitable solution, so that the working capital remains available for what it is really meant for: doing business.