working capital financing

It used to be common to insure the entire debtor portfolio, but that is clearly changing. Increasingly, we are being asked whether it is also possible to insure just one specific customer or even a single transaction. The short answer to that is: yes, it is possible. Indeed, single risk credit insurance was developed precisely from this concrete need in the market. More and more insurers are offering it. A positive development, then!

Imagine: a loyal supplier at home or abroad informs you that, according to his credit insurer or credit information report, your company has insufficient or even no coverage left. Even though you always pay neatly and on time. For the supplier, this means extra risk. For you, it often means only one thing: paying in advance. And that directly affects your working capital, your liquidity and the freedom of movement you so desperately need as an entrepreneur.

December is traditionally the month in which entrepreneurs and financial teams finalise the figures for the coming year. The focus is almost automatically on the familiar pillars: turnover, margin, costs and the resulting profit forecast. However, what too often remains under the radar is the financing structure. Does the current mix of loans, credit and equity still fit in with the ambitious plans you have set for 2026?

As a medium-sized entrepreneur, you know better than anyone how dynamic your business operates. And that working capital is your lifeline to growth and continuity. You may need it to absorb seasonal peaks, pre-finance a large order or optimise your debtor management. The right working capital financing then makes all the difference. Many entrepreneurs stare blindly at the interest rate. While the crucial details are often hidden in the financing contract. Indeed, in the small print!

The past two years have marked a crucial turning point in the funding market. After a period of restraint, the major Dutch banks are again showing renewed growth in their corporate lending. However, this growth goes hand in hand with a fundamental change in role and selectivity.

Many entrepreneurs recognise it: you want to grow, innovate or simply keep your business running, but financing is a stumbling block. The first thought often goes to the bank. Logical, as that has been the place for business financing for years. But in practice, a single source of financing often no longer suffices. Especially in a rapidly changing economy. The solution? Smart combining, or 'stacking finance'.

In the dynamic world of the paper and board industry, where flexibility and quick adjustments to market demand are crucial, a leading producer of specialist paper and board recently faced a challenge. A combination of a growing order book and necessary investments in advanced production technology created an acute need for additional working capital.

Good cash flow planning helps ensure that your business has enough cash to meet operational needs, such as paying salaries, suppliers, taxes and debts. It also helps identify and capitalise on growth opportunities, such as investing in new equipment, expanding into new markets or launching new products. Good cash flow planning is also indispensable to avoid or mitigate risks such as cash shortages, liquidity problems or insolvency. It is an essential process for any business, from small start-up to large enterprise!

Working capital is an important topic in the financial world, especially for companies striving for growth and stability. But what exactly does it mean and why is it so important? In this article, we dive deeper into the definition of working capital and the role it plays in a company's financial management.

Dstrezzed is a menswear brand targeting the modern adventurous man who values comfort and quality. The company was founded more than a decade ago by Eric Aarden, and now his son Teun also joins the company. They are supported by a strong management team.