Why early warning signs make all the difference
If you intervene three months earlier, you will generally lose only part of the outstanding amount rather than all of it. Once bankruptcy has been declared, there is virtually no room left to act.
Short answer: the strongest warning signs come from your own receivables records, not the news.
Warning signs in your own records
- Time taken to pay creeps up: from 30 to 45 to 60 days.
- Partial payments without prior notice.
- Payment arrangements that are repeatedly renegotiated.
- Invoices are suddenly disputed over minor details.
- Your contact changes frequently or cannot be reached.
- Orders become larger and more urgent, often just before the collapse.
Warning signs in public sources
- Annual accounts are filed late or not at all.
- Declining solvency or negative equity in the latest figures.
- A change of directors or the departure of an accountant.
- Stock and receivables pledged to a finance provider.
- A change of address to a postal address or substantially smaller premises.
- Insolvencies elsewhere in the same group or involving the same director.
From warning sign to action
| Risk level | Action |
|---|---|
| One warning sign | Freeze the credit limit, monitor payment behaviour weekly |
| Two to three warning signs | Reduce the credit limit, shorten the payment term, make partial deliveries |
| Persistent arrears | Require advance payment or security |
| Insolvency notice | Stop deliveries immediately and submit your claim |
What you should never do
Continuing to supply a customer to "help them through" almost always increases your losses. A large final order on normal terms is another classic pitfall: it increases your claim at precisely the worst moment.
Would you like to receive automated alerts about your debtors? Request credit information below.
From explanation to a company file
- Check a company's creditworthiness
Combine registration details, annual accounts, payment history and insolvency information before doing business.
- Credit report: example and request
View a clearly fictional file, its sources and limitations, and request credit information.
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.
Request credit information with sources and reference dates
