Tip 1. Check, check, double-check: credit limits and debtors
Most credit insurance policies have an insurance year of 12 months. So you pay charges over all credit limits and checks over those 12 months. Check whether you really need all credit limits. Perhaps you can let some of them lapse. And then immediately check which debtors you want to continue with based on self-assessment.
Tip 2. Advance amount lower? Avoid too high an advance amount
Above all, report changes in your insured turnover to us on time. Because then we can properly estimate the amount of advance quotations for 2024. The advance premium invoices are pre-taxed with 21% insurance tax on the estimated domestic (i.e. not foreign) turnover. Please also read tip 5: in fact, you do not have to report everything when calculating insured turnover.
Tip 3. Apply for timely deferred collection
Do you expect one of your debtors not to pay within the stipulated period? If so, it is smart to request a deferral of collection from your credit insurer in advance. All credit insurance contracts have a deadline by which collection proceedings must be started. Don't apply for a postponement in time? Then a credit insurer may reject your claim.
Tip 4. Clean up but: for better ratios
One of the biggest asset items on the balance sheet at most companies is the accounts receivable item. Can you reduce that item? Because that will lead to an interesting improvement in your ratios on the balance sheet. So now is the time to pay extra attention to collecting receivables and think carefully about whether you can still have defaulters collected by an agency. Alternative: selling your debtors (temporarily). By the way, you can always submit your 'uninsured debt collection' to us.
Tip 5. You don't have to declare everything when calculating insured turnover
The end of the insurance year... then you have to declare the insured turnover to your credit insurer. But you don't have to declare turnover with:
- Private individuals;
- Cash payments, advance payments;
- Government agencies, unless there is political cover;
- A zero limit or negative review provided it is less than one year old;
- Related debtors (think a parent or subsidiary), unless covered under the policy.
Once the final turnover statement has been determined, you will receive a final statement. This will settle the advance invoices and determine any premium refund/surcharge.
Tip 6. Check whether your policy still suits your current business operations
This avoids surprises and reduces the chances of a claim being rejected. Therefore, check whether you still want to include, for instance, affiliates, uninsured countries, manufacturing and contract risks or prepayments. Also check whether the maximum payment terms, deadlines for filing collection cases and claims mentioned in the insurance policy still match your practice.
Tip 7. Holiday closure? Then take action in advance
Can't fulfil your policy obligations within the deadlines mentioned in the policy schedule because your business is closed due to annual holidays? If so, please contact us. We can suggest a suitable solution for this.
