Summer is unfortunately not only the season of sunshine and holidays, but also of a notable increase in liquidity problems. Several factors play a role in this. For instance, companies still have to repay support measures from the corona period, are struggling with rising commodity prices and labour shortages, and high inflation combined with rising interest rates is creating uncertainty. Add to this falling consumer confidence, and it is clear that economic pressures can build up considerably, especially in the warm months.
Peaks
A clear sign of the trend is the annual spike in bankruptcies in June. The cause is distressingly simple: after paying holiday pay and paying payroll taxes on it, there is often simply not enough money left over to pay other bills. This causes some companies to go under financially even before the summer has really started. And the number of bankruptcies this year is expected to be even higher than in previous years.
Fixed charges continue
Even companies that survive this 'holiday money rush' are not there yet. Because after paying out comes spending. While many employees are enjoying their well-earned holidays, business owners are seeing a decline in turnover. Sometimes sharply, especially in sectors with summer closures or construction periods. But in the meantime, of course, fixed expenses continue to run. Even in September and October, this regularly leads to additional pressure on liquidity, even for companies that had taken this into account.
Risk to you
Therefore, it is important to also consider the risks on your customers' side. There is a real chance that one of your customers will not be able to pay on time in the coming months. Fortunately, you can guard against this. First of all, make sure that agreements made are always in black and white. That sounds like an open door, but we still see this go wrong too often, with all the consequences that entails. Do you have credit insurance? Then pay close attention to the deadlines for starting a collection process. Are you expecting a delay in payment? Then contact your insurer in advance to request a postponement. If you do not do this in time, your claim may be rejected. In some cases, you can accept a small delay without consultation, as long as you stay within the deadline. If this term is exceeded, you will have to submit this to your credit insurer, who will assess whether resupply is still insured. If you receive a request from your customer for a longer payment arrangement, involve us immediately. We will investigate your buyer's creditworthiness and, together with the insurer, agree whether a postponement is possible and whether the claim will remain insured.
Summer is a time to refuel, but also to stay alert. Do you have questions about payment risks, credit insurance or want advice on a specific payment arrangement? Our specialists are ready to help you.