Record number of insolvencies in Belgium this summer

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. 

 

Read all tips from our experts
to prepare your company for the future

Download our free whitepaper

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. 

 

A safe future for your company? Discover our tips, to prepare your company for a safe sailing towards the future.

Download our free whitepaper I want to discuss the future of my company with Euler Hermes