Shockwaves were sent through the construction industry when various media outlets reported that Richard Crookes was on the verge of insolvency. Trade Credit Insurers remained firm in their support of the builder and the industry as a whole.
Financial uncertainty has the entire construction industry on edge. More and more suppliers and sub contractors have felt the effects of bad debts in the last few months due to the large number of major insolvencies so far in 2023. Concerns went to a new level a fortnight ago, when it was reported by numerous media outlets that Richard Crookes were in talks with administrators. How could it be, that such an established builder, with such a solid pipeline of projects – many backed by the Government – potentially be at this point?
Further reporting, and statements released by the company dismissed the reports in the following days. This went some way to reassure suppliers, but the matter only reinforced the value that a trade credit insurance policy provides – particularly in the current market. Whilst acknowledging that the articles and rumours existed, the trade credit insurance market placed far more emphasis on the public and privately available financial data that they had access to. The majority of credit insurance companies held firm and continued to offer cover on Richard Crookes – giving our policy holders the assurance that should the worst happen they’d be covered.
We are already starting to see the catastrophic impacts bad debts can have on sub contractors and suppliers. Many established sub contractors and suppliers in the construction industry have recently gone broke themselves off the back off one of their customers going insolvent. Reliable, cost effective and comprehensive cover still exists in the credit insurance market. To consider your options about how we can help protect your business from a bad debt, please reach out and we’re happy to talk about how we can tailor an offer for you.
Debtor Protect are specialist trade credit insurance brokers, we can help you find the most appropriate cover available. In addition we will help with the ongoing management and compliance of your policy to ensure come claim time, your claims are paid.
Contact us today to find out how we can help protect your business.