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.
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 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%).
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.
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.
For more information about our trade credit insurance solutions, don’t hesitate to call us on +32 (0)2 289 31 11 or fill in our contact form.