L&M Rijnsburg: Our tulips bloom all over the world

Every company that conducts international business understands that along with new opportunities come risks. This is particularly true when it comes to managing debtors. Flower exporter L&M Rijnsburg was able to mitigate its risks by utilizing a clever solution from Allianz Trade, enabling the company to pursue growth without concerns.

L&M Rijnsburg is one of the largest players in the international flower industry. They have been working here for nearly seventy years, providing the highest quality flowers and being one of the largest exporters in the market. The flowers and plants, primarily tulips, are sold around the world. In addition to its already global presence, the flower exporter has strong growth ambitions for the coming years. Unfortunately, growth and new opportunities often come with risks, including debtor risk. This risk is quite prevalent because of the extremely narrow profit margins in the industry and the fast pace of operations in the supply chain. L&M Rijnsburg is aware of this, so they carefully weigh all risks. To cover the debtor risk, the company from Rijnsburg uses trade credit insurance.

L&M Rijnsburgcovered the risks for years through a major credit insurer in the flower industry. However, that contract could not cover part of the suppliers' credit payments. Jan Willem Leeuwenburg, the CEO of L&M Rijnsburg, discovered a workaround for his problem: "I arranged for these payments to be made through the auction, ensuring that I received my money, even with the additional costs. However, the auction charges a certain percentage for billing. As a result, the company lost tens of thousands of euros per year."

As this was not ideal, his in-house intermediary began searching for a better option. He got in touch with Allianz Trade through Allianz. And it was able to offer a comprehensive contract, with wider limits on certain debtors and lower premiums. As a result, the flower exporter no longer had to obtain invoices through the auction. Which resulted in significant savings. A fruitful relationship between the three players enables entrepreneurship abroad with minimal risks.

Leeuwenburg stated, "It meant a great deal to me to have the ability to cover these payments through our trade credit insurance. Allianz Trade and the intermediary are also pleased. "It is a classic win-win situation. L&M Rijnsburg is growing rapidly and is also a very pleasant customer. I am also proud of the fact that, as relatively small players in the flower industry, we were able to make such a good offer,” the intermediary stated. Not only were the limits expanded for certain debtors, but a solution was also found for seasonal peaks. To mitigate the heightened risk during times of increased demand, Allianz Trade implemented a clause known as the 'Mother's Day clause'. This ensures that L&M Rijnsburg can temporarily increase the limits by fifty percent during critical peak times throughout the year. As the name suggests, this is not only for Mother's Day but also for Valentine's Day, International Women's Day, and All Saints' Day.

The collaborative effort of the Sales and Risk departments is extremely important in these processes. Each specialist looks at a case from their own expertise, and by combining their expertise, the intermediary and Allianz Trade provide a tailor-made solution. The intensive collaboration between the parties, along with an in-depth risk assessment, ultimately contributed to this great result.

The first discussions took place in May and June of 2017, the quotation was discussed in August, and the contract will come into effect in January 2018. The start of a successful relationship among three players, one that facilitates entrepreneurship abroad with minimal risks.

A trade credit insurance helps you and your company. It provides peace and security for entrepreneurs. How? With a trade credit insurance, you know that your invoices will be paid.

Your company maintains financial health through well-organised accounts receivable management. And your cash flow is protected as well. With a customer check in advance, you know precisely which opportunities you can seize. And that works out well.