The world turns on
During the "intelligent lockdown" declared by Prime Minister Mark Rutte in mid-March, the world came to a standstill for a large number of entrepreneurs. Turnover was reduced or even stopped altogether. In other areas, however, the world continued to turn as normal: the Indeed, current payment obligations and outstanding invoices had to be paid as usual.
To accommodate these entrepreneurs, the government quickly and appropriately offered various support measures, including the Temporary Emergency Employment Bridging Measure (NOW) and the Injury Compensation COVID-19 (TOGS, a one-off grant of 4,000 euros). Individual suppliers and contractors also thought of solutions, as did financial institutions such as banks and credit insurers.
For instance, credit insurers quickly pledged to extend outer collection deadlines so that pressure was removed from suppliers and buyers. With the credit insurers finally receiving state aid from the Dutch government at the end of May, they are also able to continue to provide coverage on buyers. Provided these buyers prove viable, of course.
From (delivery) problem to workable solution
As lockdown measures continue to be relaxed, more and more companies are happily back to (full) operation. This is good for sales, but there new problems also arise. On the one hand, companies hit hard by the corona crisis have hefty outstanding amounts. On the other hand, they have to be resupplied. Because otherwise there can be no turnover.
Deferred collection has already stopped at some insurers with effect from 1 June. At other insurers too, it will return to normal terms in the foreseeable future. Therefore, it is important to discuss with the relevant buyers and the credit insurer make clear agreements about delivering again and getting old outstanding receivables paid. Many times this case by case discussed and recorded.
Xolv has already reached a large number of agreements with its insured customers, buyers and insurers in recent weeks to achieve workable solutions to come. It is important that you involve Xolv and the insurer and does not enter into agreements with customers on its own. If you do, this may coverage problems yield if things do go wrong unexpectedly. And that is the last thing you want in these already challenging times.
Do you have questions about deliveries and outstanding claims? We are of course happy to think with you.
