Why sector figures matter
The risk of a customer failing is closely linked to their sector. Construction, hospitality, retail and transport have structurally different insolvency patterns from business services.
Short answer: use sector figures to calibrate your initial credit limit and payment term, and the individual customer file to justify departures from these.
From figures to policy
| Sector outlook | Initial credit limit | Payment term | Review |
|---|---|---|---|
| Low insolvency level | Normal | 30 days | Every six months |
| Average | Normal, with evidence of payment behaviour | 30 days | Quarterly |
| Elevated | 50% of normal | 14 days | Monthly |
| Significantly elevated | Advance payment or security | On delivery | Ongoing |
Four factors that explain the sector outlook
- Margins. Thin margins mean little buffer against rising costs.
- Working capital cycle. Long lead times and upfront funding requirements increase vulnerability.
- Supply chain dependency. Reliance on a few large customers makes smaller businesses vulnerable.
- Sensitivity to the economic cycle. Investment-driven sectors respond sooner to interest rates and falling demand.
Work with trends, not snapshots
Compare rolling three- or twelve-month figures with the same period a year earlier. Use statistics from CBS (Statistics Netherlands) as a reference for national trends and the Centraal Insolventieregister for individual notices.
Avoid these mistakes
- Excluding an entire sector instead of adjusting terms
- Using sector figures as a substitute for reviewing individual customer files
- Ignoring concentration: 40% of your turnover in one vulnerable sector is the real risk
- Failing to adjust policy when the sector outlook improves
Measuring concentration
Calculate each quarter what percentage of your outstanding receivables is concentrated in the three largest sectors. Above 50%, diversification becomes a strategic priority, regardless of the quality of individual customers.
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Sources and scope
Examples and policy choices in this article are illustrative, not a current quotation, fixed standard or financial or legal advice. The editorial revision date relates to the summary, structure and source references; it is not a reference date for the underlying data.
| Primary source | What is it used for? |
|---|---|
| De Rechtspraak — Central Insolvency Register | Official insolvency notices and available public reports; check the relevant entity and the date of the court ruling. |
| CBS (Statistics Netherlands) — bankruptcies, key figures | National bankruptcy statistics with reporting periods, definitions and explanatory notes. |
| KVK (Dutch Chamber of Commerce) — checking business partners | Company identification and checks on business partners. |
Source links support the topic mentioned, but do not automatically substantiate all percentages, time frames or examples in this article. Check current terms and rules with the responsible authority.
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