Forget the stuffy image
Bankers and insurers used to be known as solid parties where innovation was often slow. Fortunately, a lot has changed! And we like to talk about that for a moment, because it is high time we got rid of that dusty image.
A good broker is much needed
The EU has declined economically since the introduction of the euro. The US economy is 30% larger than the European one. Johan Geeroms, Director Risk Underwriting Benelux Allianz Trade: "At Allianz, we fear that German automotive companies will go to China at some point. People produce cheaper there, it is the biggest market and China has lithium and other critical materials. This is going to have huge implications. Just looking at that the Netherlands depends on exports to Germany for 60%. The further you do business from home, the more dangerous. Therefore, differentiating your portfolio and knowing your customers is of utmost importance. The risk of bankruptcy is always there and it only takes one big customer to go bankrupt to put a company in serious danger."
The mega damage would have been incalculable
Two entrepreneurs who started for themselves in the oil bunkering business in 2013 have grown into a wonderful company with mega sales. At the time they started, they were allowed to exclude their large customers from coverage. On paper strong debtors, yet we advised the start-ups not to exclude any customer. Just insure everything, including that strong market-leading company, where the gentlemen had an outstanding claim of millions of dollars. Xolv Partner Jeroen Ottevanger explains further.
Egypt drops the pound rock hard: masterstroke or miss?
The Egyptian pound plunged precipitously last week. By moving to a more flexible exchange rate, the country kills two birds with one stone. The tourism industry gets a boost and on top of that Egypt receives a hefty IMF support package.
Selling SME business. How then?
Have you reached an age where you are thinking of quitting your business and have no successor or do you believe that the phase your business is in no longer fits well with your personal qualities and ambitions? Then selling your business might be a good solution. But selling your life's work is not something you just do on a back afternoon. No, something like this requires a lot of thought, preparation and often an emotional process to arrive at this drastic step. So what are some of the things you need to look out for as an entrepreneur?
It is too early to bet on the demise of king dollar!
French President Emmanuel Macron's recent claim for a "European strategic autonomy" clashes with reality: "the supremacy of the US dollar". Talks about the Chinese yuan challenging the US dollar as the main currency standard have intensified in recent months. For instance, France and China completed their first LNG transaction in RMB and China and Saudi Arabia agreed to build a refinery for RMB 83.7 billion without payment in USD. This is, of course, positive. But let's face it, unless there is a dramatic geopolitical and financial shift, it will be decades or maybe even longer before the RMB becomes a serious competitor to the US dollar.
What risks do you face when doing business internationally?
As an entrepreneur, you are always looking for opportunities, for new sales markets, for new cooperation partners. And those opportunities also lie beyond the borders of the Netherlands, of course. Naturally, doing business internationally also involves risks. What about currency fluctuations? Just to name one example. To manage risks, you will first need to have an overview of what risks there are. We list some of them:
This law extends beyond traditional debt collection services
Xolv has been working with Mariënbergh Incasso Services for many years. Director Patrick Spierings has been in the business, as he puts it himself, "for about 40 years". Lawyer Robbert Goossens joined the company early this year. Robbert is a specialist, among other things when it comes to the Debt Collection Services Quality Act: "The entry into force of this act has been postponed several times, but now it really will take effect on 1 April. The Wki introduces major changes."
Repayment problems with tax debts?
The financial news is full of stories of entrepreneurs struggling to pay off debts accumulated during the corona era. These may include rent debts at retailers who faced lockdowns, repayment obligations at the bank, but especially tax debts. The latter must be repaid in a maximum of 60 months from October 2022. Under normal circumstances, that seems a perfectly reasonable timeframe. Were it not for the fact that we were already in economic dire straits at that time. High energy prices, major problems in the supply chain of raw materials and resulting high prices. This also led to reduced demand in industries. After the Manufacturing Purchasing Managers Index (PMI) experienced a brief upturn between April and August 2021 with a peak of 63, it then fell precipitously to its low of 43 a year later. A score below 50 means an expected decline in manufacturing demand.
Bank guarantee has long since ceased to be the only option
Working capital is the money your business needs to meet day-to-day financial obligations. For example, to pay suppliers, purchase goods and parts necessary for the business or project. Companies that manufacture capital goods (think machinery) and, for example, construction companies often need to provide financial guarantees as security that they can meet their obligations, take on a project and when they receive advance payments. In the current market, we also see prepayment guarantees being required when goods are ordered abroad (think China or Vietnam, for example).