credit insurance

After months of hard work, it is finally time to take a breather. For many entrepreneurs, the summer period means a time of rest and recovery. Yet it is not always easy to let go of work completely. And with good reason: it is precisely during these months that the financial risks for companies often increase significantly.

From 1 January 2025, new regulations will come into force in Belgium that will directly affect companies with credit insurance. Whereas until now it was possible to reclaim VAT after a customer's insolvency, this will soon come to an end. This change will impact both Belgian companies and Dutch principal insured companies with Belgian branches under a group policy.

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.

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.

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. 

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.

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.

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.

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.

Obtaining financing is essential for the growth and success of your business. One way to obtain financing is through a bank loan or overdraft. When taking out a bank loan, it is common for the bank to impose certain conditions, also known as bank covenants. In this brief guide, we will elaborate on what bank covenants are, what types there are and the consequences of not complying with them.