What should you report to your credit insurer if a customer is in WHOA proceedings?
The WHOA allows viable companies to restructure unbearable debt before it comes to bankruptcy. If creditors holding two-thirds of the outstanding debt agree to the arrangement, the court can force the remaining creditors to join in. Different categories of creditors may be treated differently. This allows the entrepreneur in dire straits, for example, to pay financiers less or later than suppliers. As a supplier, you then continue to supply and so the company does not run out of stock.
Economic uncertainty and the liquidity position of companies
The world is currently in turbulent times. Conflicts in the Middle East and Ukraine continue, while in the United States a president is in power who is restructuring international trade based on his own vision of economic justice. The result is a global economy under pressure, in which uncertainty seems to be the rule rather than the exception. This instability has a direct impact on business, especially on the liquidity position of companies.
Turbulent times and an uncertain future
Who would have thought a few years ago that the world order would change so drastically? Whereas the United States, Western Europe, Canada and other Western countries were loyal allies for years, relations now seem to have shifted dramatically. On 2 April last year, Trump declared Liberation Day. In doing so, he announced hefty import tariffs: on a wide range of countries, including the European Union (20%). In fact, all foreign cars are subject to a tariff of 25%.
Protect your business with credit insurance: security in uncertain times
For any entrepreneur, control over financial management is not a luxury, but an absolute necessity. You deliver products or services with confidence in the agreements you make, but what happens when a customer does not fulfil his payment obligations? Or when that same customer unexpectedly goes bankrupt? In such situations, credit insurance provides an effective safety net, not only protecting your company from direct financial loss, but also structurally better prepared for unforeseen circumstances.
Insight and protection
International trade brings opportunities, but also challenges. One of the big risks you face is currency risk. Fluctuations in exchange rates can significantly affect your profit margins. In addition, external factors such as political events, economic instability or legal measures in your trading partner's country can delay or even block payment of invoices.
Different solutions to get full limit
Sometimes an insurer approves a credit limit application only in part. However, many companies want the full credit limit covered. Especially for those companies, the Top Up policy has been introduced.
We value personal contact
Naomi Sapir (40), Roba Metals board member, immediately conveys one of Roba Metals' important values in conversation with us. The company values its relationship with people, be it their own employees or the customers and suppliers they work with. Metal is the business, the company is doing well, at the same time Roba Metals has a very social policy. People are the core. Naomi: "If we have a good relationship with a customer who cannot get cover from our primary credit insurer, we will find a solution."
The beauty of a solution in Brazil's interior: how IA Group resolved an international trade dispute
International Advisors (IA Group) is a partner of Xolv in the field of collection of large foreign receivables. IA Group tackles cases through personal contact and adequate follow-up.
Letters of Credit: the key to success in challenging African markets
Doing business in Africa presents opportunities, but also challenges. Especially in countries with economic or political instability, collecting payments can be a risky undertaking. Fortunately, there is a tool that can help with this: the Letter of Credit (L/C). Especially if you cannot get a credit limit on your buyer, this can be a good tool to still continue doing business. A Letter of Credit is a document in which a bank guarantees on behalf of your buyer that you will be paid once you have met the agreed conditions. It is a form of financial security that significantly reduces the risk of non-payment.
Insure political risks
Inter-state conflict, failed national governance and rising nationalism are all part of the geopolitical landscape. Stability in a country can sometimes gradually crumble under the eye of the media. But often the old order collapses unexpectedly, leaving investors, lenders and contractors unprepared and with financial losses. Too often, companies discover they can no longer operate in a market they once considered predictable.