Tip 1. Check credit limits and debtors
Most credit insurance policies have a 12-month policy year. So does all credit limits/checks over which you pay fees. It is therefore important to check whether you really need all the credit limits or whether you might be able to drop some of them. Also consider which debtors you do or do not wish to continue with based on self-assessment.
Tip 2. Avoid excessive advance payments
It is important to communicate any changes in your insured turnover to us in good time. Only then can we properly estimate advance billing for 2023. Advance premium notes are pre-taxed with 21 per cent insurance tax on the estimated domestic turnover. You do not pay insurance tax on the premium relating to turnover abroad.
Tip 3. Apply for timely deferred collection
Around the holidays, it is common for companies to be poorly served and not pay their bills on time. All credit insurance contracts have a deadline by which collection proceedings must be initiated. If you expect a debtor not to pay within the set deadlines, it is wise to request a postponement of the collection in advance with the credit insurer. If you don't, your credit insurer may reject a potential claim.
Tip 4. Clean up your balance sheet for better ratios
The item accounts receivable is one of the largest asset items on the balance sheet at most companies. Reducing the size of this item leads to an interesting improvement in balance sheet ratios. Therefore, pay extra attention to debt collection now and consider carefully whether you can still have defaulters collected by a collection agency. You can make your "uninsured collection" submit via Xolv. An alternative is to (temporarily) sell debtors so that you create a better balance sheet position.
Tip 5. Calculate insured turnover: you don't have to declare everything
At the end of an insurance year, you have to declare the insured turnover to your credit insurer.
Note! You do not need to declare your turnover with:
- Private individuals
- Cash payments, advance payments
- Government agencies, unless there is political cover
- A zero limit or negative review provided it is less than one year old
- Affiliated debtors (think a parent or subsidiary), unless covered under the policy
Once the final turnover statement has been determined, you will receive a final statement. This will settle the advance invoices and determine any premium refund/surcharge.
Tip 6. Check whether your policy is still in line with current business operations
The end of the year is the perfect time to check whether the policy is still in line with current business operations. This prevents surprises and reduces the likelihood of a claim being rejected. Therefore, check whether you still want to cover, for instance, affiliates, uninsured countries, manufacturing and contract risks or prepayments. Also check whether the maximum payment conditions, deadlines for filing collection cases and claims mentioned in the insurance policy still match practice.
Tip 7. If there is a holiday closure, take action in advance
Can't fulfil the policy obligations within the deadlines mentioned in the policy schedule because the company is closed due to annual holidays? If so, please contact us. We will suggest a suitable solution.
