In the textile service industry, where the payback period for extending credit can be long, credit insurance helps to ensure thatBeirholm Væverier – a Danish company in the textile sector – and its customers don’t get into financial trouble.
Discover how trade credit insurance fromAllianz Trade in Denmark provides them security againstcredit risk.
Danish company Beirholm produces home textiles such as bed linen, towels, sheets and tablecloths. The company, based in the city of Kolding, is a leading market supplier of textiles to rental laundries that service the hotel and restaurant industry, primarily in Europe.
Thetextile service industry consists of industrial rental laundries that buy textiles – from for example Beirholm – and washes and rents them out to their customers.
The 151-year-old family-owned company works closely with its customers to meet their requirements and changing needs by, among other things, understanding the challenges they face.
When a customer in the textile service industry has to buy new textiles, it’s often a large investment – one that doesn’t see a return for many months. The payback period for extending credit can be long.
Trade credit insurance and the thinking behind it has therefore been part of the company’s mindset and DNA for many years, says Peter Beirholm, CEO of Beirholm.
“Of course, Beirholm could consider taking on the risk itself, but trade credit insurance from Allianz Trade is a far better solution,” says Peter Beirholm.
“Allianz Trade takes care of that part. And what we pay is minimal compared to the security it gives us and for not being suddenly exposed to risk, which can well happen with the amounts we have outstanding. Luckily, we have a very good track record and a good history with Allianz Trade that tells us we have done a good job hedging our risks.”
Risk assessment has become a regular part of the way Beirholm works with its new customers and it’s something it is always proactive about.
“We tell our customers that this is our approach and it helps assure – both them and us – that we’re updated the whole time on where we stand,” says Peter Beirholm.
At no time has Beirholm regretted its collaboration with Allianz Trade. Since the company started working with Allianz Trade, it has suffered virtually no losses.
“Allianz Trade is able to give us insight into the customers we are dealing with. How much risk can we take on? How much leeway can we give our customers? And we can integrate that into our own systems. So, Allianz Trade makes something quite complicated simple,” says Peter Beirholm.
And when one is the fifth generation to lead a family-owned business, the security of trade credit insurance means a lot: “It’s one of many inputs that help ensure we have assessed the quality of our customer partnerships. Good quality and security in choosing the right customers are really important. A lot can happen in a short time,” says Peter Beirholm.
