Trade Credit Insurance: a triple safety belt against customers who don’t pay
The public health crisis may gradually be coming under control, but the economic aftershocks of the lockdown will long continue to be felt by many businesses. Economists at Euler Hermes are expecting an avalanche of payment defaults and insolvencies in the coming months. Truly knowing your customers is the message now more than ever. Trade credit insurance is the ideal instrument for doing so.
Now that the strict lockdown is over, many business leaders are hoping for a rapid return to business as usual. However, Yannick Vermetten, commercial director of Euler Hermes BeLux, urges caution. “Naturally, a relaunch is important, but growth in turnover should not be fetishized. Stability and a solid cash position are the priorities today. Opt for smaller orders for which you are sure you will be paid. Larger deals are much more uncertain. Determine whether customers have sufficient capacity to pay. Prudence and a sense of realism, that’s what it’s about today.”