As an entrepreneur, you work hard all year and now is the time for relaxation. It is not easy to let go of everything, but when you do, the battery is fully recharged and you can get back to work with full energy. Especially during the holiday period, many companies run into liquidity problems. There are several reasons for this. Just think of government support measures that need to be repaid, increased raw material prices, staff shortages, inflation that is at dangerously high levels, falling consumer confidence and rising interest rates that make a recession looming.
Many bankruptcies in summer months
Traditionally, we see a spike in insolvencies in the month of June. The reason for this is as simple as it is painful: after the holiday pay has been paid out and the payroll tax on it has been remitted, the outstanding invoices can no longer be paid. The cash for this is simply lacking at many companies. There are well-founded fears that the number of bankruptcies will be even higher this year.
Holiday money attack survived?
Companies that survive the 'holiday money rush' should certainly not rejoice too soon. Because often the problems are not over by then. After all, after the payment of holiday money comes the spending thereof: the holidays themselves. A period during which turnover decreases for a certain time or even (due to summer closure or the construction holiday) disappears altogether. But the fixed costs do continue as usual during this period. Even in the months of September and October, this often creates liquidity pressure, even for companies that have factored it in.
5 tips: this is how to arm yourself against buyers with payment problems
So given the situation outlined, it is not inconceivable that your buyers will be unable to pay you sometime in the next few months. Fortunately, you can guard against that. How? By taking advantage of these 5 concrete tips:
- Our first advice is to make clear agreements and confirm them in writing. Perhaps a clue, but there are plenty of examples of companies that did not have their agreements properly written down (and therefore did not have a leg to stand on).
- Keep in mind - if you have credit insurance - the deadline for initiating collection proceedings. If you do not expect your debtor to pay within the set deadlines, it is wise to request a postponement of collection from your credit insurer in advance. If you do not do this, the credit insurer may reject a possible claim. So take no chances!
- If the overdue period is not exceeded, you can accept it without consulting your credit insurer. Please note that the originally agreed maturity date then remains applicable.
- If the overdue period does exceed, then you should submit this request to your credit insurer. The credit insurer will then see if it will grant permission for insured forwarding.
- Should you receive a request to defer payment beyond the arrears period, contact us. We check your buyer's creditworthiness and check whether multiple payment arrangements are in place. In consultation with your credit insurer, a deferred payment may be accepted, keeping the claim insured.
We are happy to advise
We hope these tips will help you guard against expected liquidity problems in the summer months. Want to know more about what you can do if a buyer is temporarily unable to pay? Or have you received a specific request for postponement of payment until after the overdue period? Our specialists will be happy to advise you.