Causes of bankruptcies
Although there are often multiple causes for retailers to fail, adjusting distribution strategy too late usually plays an important role. Many bankrupt retailers invested too late in sales via (own) online shops. As a result, they lost more and more market share every year. After all, sales via webshops have been increasing sharply compared to sales via traditional shops for years.
The go-to retailers have not always been successful either. After frantic attempts, they eventually disappear from the market. Fortunately, there will always be successful traditional retail chains, as long as they keep an eye on a dual distribution strategy (selling via the shop and the web).
Hedging credit risks
Retailers are increasingly dependent on supplier credit. They must therefore become increasingly transparent to financial parties, including credit insurers. The latter provide cover based on a company's annual figures. The more recent this information is and the more frequently it is provided, the more likely insurers are willing to provide cover. As the risks in the retail sector increase, the need for credit insurance among suppliers increases.
Xolv helps both suppliers and retailers hedge credit risks, allowing suppliers to grant credit terms. This is often a prerequisite for financiers to fund accounts receivable. For retailers in dire straits, solutions are also possible. These usually carry a somewhat higher price tag, but in proper consultation with the retailer, good arrangements can be made. After all, the retailer benefits from supplier credit to generate working capital.
Want to know how you can hedge credit risks (better) or what solutions are available to you? Then contact us at info@xolv.nl or 073 - 820 02 95. Our specialists will be happy to assist you.
