The heatwave wasn’t the only thing to hit Belgium during the summer of 2018. In the country as a whole, no less than 1,237 businesses shut their doors during the two months of summer, representing 30% more than in July and August 2017.
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Brussels was hit the most
The number of insolvencies in Wallonia remained steady at 274, while these went up in Flanders by 9% to 542. By contrast, the number of insolvencies in Brussels severely increased to 424, a 140% rise over the 175 recorded in the same period in 2017.
Construction overtakes hotel & catering
Construction was the Belgian industry that was most hit by insolvencies, with an increase of 6%. In general, insolvencies also went up in the automotive and transport sectors. Some industries saw a positive trends as insolvencies fell sharply in wholesale, retail and especially the hotel & catering sector (-12%).
Over 25% of insolvencies result from customer non-payment
Unpaid invoices and insolvent customers are a devastating threat to the cash flows of businesses. The lack of liquidity can undermine a company’s stability and even lead to bankruptcy.
Protect your business against unpaid invoices and insolvencies
Trade credit insurance protects you against financial losses caused by the non-payment of your B2B receivables. Payment for supplies of products and services is guaranteed, even if the customer goes bust. In the event of non-payment, Euler Hermes will pay your claim after 60 days.