The biggest driver of the recession is inflation. In particular, the prices of consumer goods soared. But energy and fuel prices were also a major factor. These did come down in recent months, causing inflation to ease a bit again. To curb inflation, interest rates have been raised sharply. As a result, consumer spending is falling and house sales are stagnating. So there is much more saving.
The Netherlands is certainly not doing badly
We at Xolv are therefore seeing an increasing number of payment problems, collection cases and bankruptcies, especially in the retail market. This will eventually trickle down to other sectors as well. Still, all is not dramatic and compared to other European countries, the Netherlands is certainly not doing badly. Moody's has again awarded AAA status to the Netherlands!
What to do?
Does that mean you can sit back? Of course not! Now is the time to take action to get well through this mild recession. How? By not letting fixed costs rise too much, but also, above all, by looking for new business opportunities. In addition, make sure you keep a good eye on your customers' development and cover risks well. In many cases, you prevent unexpected debtor losses by checking and monitoring customers' creditworthiness. And with credit insurance, you cover those losses if customers unexpectedly fail to pay. This way, you prevent financial problems in your business and ensure that your profits do not disappear like snow in the sun!
