credit insurance

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.

Now is the time to take a close look at your credit insurance. What can you still arrange, or leave out, to gain maximum financial benefit? With these seven tips, you will be well prepared for 2025!

Don't panic! Applying for a credit enhancement, possibly with additional Top-Up cover, takes you through four steps:

It's that time again: our regular webinars on 'The ins and outs of credit insurance' are just around the corner! Whether you are a seasoned professional or just starting out on this topic, attending a session offers you the chance to refresh your knowledge and gain new insights.

With credit insurance, you will still get your money if your customers can no longer pay outstanding invoices. This protects your business against non-payment and prevents your own payment problems or continuity issues. But what can and may you do yourself under the policy's cover? Please note: the terms we describe may vary between policies and insurers

Arthur Schellekens, Country Manager Netherlands at Coface, has been with the organisation that helps global entrepreneurs make credit decisions for 24 years. Some 100 professionals work at the credit insurer in the Netherlands, while worldwide there are thousands of employees operating from 100 countries. Despite its size, the French organisation has managed to create the same DNA everywhere. Customers notice in everything that the insurer is involved with them, that it really helps them. The working atmosphere is very pleasant and there is a high willingness to cooperate and celebrate successes. And that is exactly why Arthur has never left Coface. 

These are uncertain times, so it is understandable that there is more demand for certainty. The number of bankruptcies has been rising for some time. The biggest hits were originally in the trade and construction industries, but it has now penetrated all sectors. It is crucial that companies keep a close eye on their financial position and take appropriate measures to avoid bankruptcy. To provide certainty to both buyers and manufacturers of investment goods, there is an important tool: the financial guarantee. Working capital is vital to keep your business running. Because a positive working capital means that your company has sufficient cash to meet its obligations and remain operational. 

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.