credit insurance

Suppose the credit insurer cannot provide cover on the debtor you are doing business with. Then it may pay to seek a guarantee from the parent company and have the limit reassessed. Credit insurers can then - by guaranteeing the parent for any losses - issue a (higher) limit on the debtor. 

Every entrepreneur has to take risks, especially in the beginning. But as the business grows, the risks become greater and also often less transparent. Good entrepreneurs know how to manage risks well. But unfortunately, they do not always succeed. Being an entrepreneur also means being able to deal with setbacks, learn from them and carry on. Falling down and getting up again. And it is essential to learn from mistakes.

There is a scheme that allows a company to increase collateral, giving financiers more security in the loan underwriting process. The Dutch government guarantees the BMKB loans provided (also known as state guarantees). The bank can subordinate half of the loan application to a guarantor loan, making the state a guarantor for 90%. What its purpose is? To encourage Dutch SMEs. But alternative lenders are also allowed to provide state-guaranteed loans. And that definitely brings advantages for entrepreneurs. 

Do you know who you are doing business with? You might now immediately think "yes, of course I know!", but we dare to doubt that. Sure, you have existing customers with whom you may have been doing business for years. With no hard feelings. They always pay on time and you trust it to stay that way. Those customers are what we wish for everyone! But what if things go haywire? Or if you take on new customers? How do you find out if they are creditworthy? Whether risks need to be covered? Prevention is always better than cure.

In both the public and private sectors, customers can ask for a guarantee or surety. Chances are you immediately think of your bank, which makes sense because until a few years ago, that was the institution to turn to. But times are changing, there are new guarantee providers on the market. And that is more than worth considering! Because of the costs, but there are more advantages.

Finding the right balance between accepting new customers and mitigating financial risks is a challenge. New clients are obviously essential for the growth of your business. But how do you know if a company is reliable enough to do business with? And how do your receivables management and sales departments work together optimally? Accepting and monitoring your customers is an essential part of your operations because:

There comes a point when, as a business owner, you know you 'have to' do something with insuring credit. At least if you sell to other businesses and deliver on credit. You just want to make sure that late payments (or worse, non-payments) affect the health of your business. Because that's something to lie awake at night worrying about. After all, you just have to pay your suppliers too. And so much more...

More and more frequently and intensively, we mediate to get higher coverage for our clients. As the economy is recovering and prices are rising, we see an increasing need for this. In this blog, you will read about the steps required to apply for an increase and a so-called Top-Up limit, an additional credit limit.

Exporters increasingly demand support in collecting payments and hedging risks. The main partners are still banks, export associations and credit insurers. Besides the traditional credit insurance policy (the so-called turnover policy), many new products have been developed in recent years. Both existing and newly joined insurers are looking for opportunities to engage the still large group of uninsured companies. Or, on the contrary, for opportunities to serve existing policyholders even better. This development in the credit insurance market is leading to more and more innovative tailor-made products.

Of course, as soon as you detect fraud in your business, you are often already too late. And then third parties often come and tell you what you could and should have done differently. That's no longer of any use to you. Prevention is better than cure! But fraudsters are becoming increasingly inventive to (often) steal money or resources unseen. You can insure internal and external fraud. Should it happen again, despite the tips in this article... at least you will limit the damage.