The support for Ukraine and the sanctions against Russia led us directly into an energy crisis. We felt and are feeling the consequences in our pockets; it will be no different in the time ahead. Combined with still a shortage of raw materials, prices have skyrocketed and we are facing high inflation.
What we have not seen before is that, at the same time, there has been a huge shortage of staff. And this applies to almost all sectors. This causes wages to rise, which in turn dampens the effects of inflation somewhat.
Impact
In particular, the impact of absurdly high energy prices is huge. While the government has initially provided support measures for individuals, there will also have to be compensation for business. Otherwise, many companies in the SME segment in particular will not be able to survive this crisis.
Benefits?
As wry as it may sound, one benefit of the energy crisis is that we are taking accelerated action to become more sustainable and develop alternative energy sources. We should also start thinking about more efficient production and recycling of materials and products. Staff working conditions will also be greatly improved.
Paradox
Paradoxically, many companies ended up having another fine year in 2022, with growth in sales and often good profits. However, we do see a sharp increase in payment settlements and debt collection cases after the summer holidays. The number of bankruptcies is also starting to rise again.
2023 a black box?
We have seen that predicting what will happen is difficult, say almost impossible. We hope the war in Ukraine will end soon, but that is unlikely to happen in early 2023. Other geopolitical developments could have a major impact on global markets. Just think of the unrest in China and Taiwan, Iran, the rush to the new elections in the United States and migration issues. The general forecast for 2023 is that economic growth will slow down. Growth of around 1% is expected for the Netherlands. The press has been predicting dark clouds for the economy in 2023 in recent months.
Prevention
We also expect an increase in payment delays, collection cases and bankruptcies for 2023. In particular, companies that survived corona through government support but were in trouble before that will be the first to go.
This means that credit insurers will have to pay out more claims in 2023. Therefore, as a company, it is now important to organise your debtor management properly and take preventive measures. Credit insurance not only covers claims, but also ensures that you avoid debtor losses. Credit insurers have the most up-to-date information on buyers' creditworthiness. If payment is not made, they can also collect money globally. After a period of relatively few bankruptcies, the premium is also sharp. If the number of bankruptcies will increase next year, the premium will start rising again. But for now, there is still sufficient cover capacity on buyers. THE time to take out credit insurance.
Explore the possibilities for your business via Xolv with no obligation.
