working capital financing

If a customer only pays after ninety days, until then you are not just the supplier, but also the financier. You send an invoice; the turnover has been realised. But the money hasn’t come in yet. The later the customer pays, the longer your working capital is tied up. Now that interest and financing costs are rising again, this naturally makes an even greater difference.

You know it by now: economic realities remain uncertain for the time being. As a result, many entrepreneurs are experiencing more pressure on their business. And remarkably, you rarely see this reflected first in sales. It usually starts somewhere else: in your cash flow. No matter how healthy your company may be on paper, if payments arrive later, or worse: are not forthcoming, continuity is immediately under pressure. How do you keep a grip on your cash flows?

Often the focus of entrepreneurs is on sales and margin. These are, of course, engines of growth. But often the fuel, liquidity, is still overlooked. In the current economic climate, we see a worrying trend: payment delays are increasing, and this has an impact on business continuity. So your accounts receivable management, and specifically Days Sales Outstanding (DSO), is no longer just an administrative KPI, but a strategic tool for survival and growth.

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.