general/economy

You cannot open a newspaper this year without an article about a company or business group in dire straits. The main causes are the expiry of major support programmes in 2022 combined with high energy prices, high interest rates and the (near) recession caused by the war in Ukraine. The mandatory repayment of deferred tax debts undoubtedly also plays a big role. What is particularly striking is that many large but also smaller, lesser-known, retail chains have run into trouble this year.

Media coverage of larger retailers in dire straits has made WHOA better known to a wider audience. Think Big Bazar and also football clubs ADO Den Haag and VVV Venlo. But generally, these procedures are not public and the general public is not aware of a WHOA process. 

Insurers have been indicating for some time that the number of bankruptcies will start increasing, yet it took a long time before we really saw an increase. After the summer break of 2022, non-payments, collection cases and payment arrangements increased. Only from second quarter 2023 did we see the first major bankruptcies and insolvencies appear in the news. The retail sector in particular is now being hit hard.

Besides the Top-Up cover of traditional credit insurers, new entrants have entered the market in recent years with new products. Both existing and new insurers are looking for ways to serve their customers even better. This development in the credit insurance market is leading to more and more innovative tailor-made products. Which solutions are these? And what opportunities do they offer your organisation? We zoom in on the possibilities for Top-Up cover.

The Netherlands has officially entered an economic recession. The first and second quarters of 2023 showed a decline compared to 2022, which is when a recession occurs. They are not dramatic declines: quarter one was 0.4% and quarter two was 0.3%. Not dramatic because the number of bankruptcies and the number of unemployed is still relatively low. This slight decline in economic activity may bring some balance back to the labour market. 

Kersten BV is a Dutch wholesaler that sells trendy home accessories to shops in more than 72 countries. From beautiful furniture to stylish trays. And from bath mats to etagères. Diederik Kersten is co-owner with his brother; they took over the company from their parents in 1995. Who in turn took it over from Diederik's grandfather. A real family business! Whether the wholesale business still looks the same as in grandfather's time? No, of course not. The world changes rapidly and Kersten BV responds to this in an agile and flexible manner.

Doing business in many countries around the world is becoming increasingly complex. Do you have to take sanctions into account, are there export-restricting measures, what is the state of political stability, is the economy going well or badly, how is the local currency developing? All questions you can answer if you take a good look at the local situation of the country or countries you are doing business with. Buyers may be creditworthy, but if payments can no longer be made due to a shortage of foreign currency in the buyer's country, for example, as an entrepreneur you still run considerable risks of unpaid invoices. Not to mention a war breaking out, just think of the situation in Ukraine.