The green line above represents the number of insolvencies in the last 6 months compared to previous years. Over 4,995 Aussie businesses have gone broke in that time. Bad debts are costing suppliers billions of dollars.
The challenges in the Australian economy are well and truely having an impact on the survival of Australian businesses. The headwinds remain, so suppliers must be doing all they can to protect their own cash flow from bad debts.
Trade Credit Insurance remains the strongest form of protection available. Here’s some examples of how we’ve recently helped new clients grow and navigate these tricky times.
SME Civil Hire Company – Queensland
State Governments continue to inject major funds into infrastructure projects. As a result of taking on more projects, this specialist equipment provider was growing rapidly. They’d had bad debts before,but because of the size they were able to absorb the pain. Because of their growth, the amount that their main customers owed them had grown into the hundreds of thousands of dollars.
For less than 5 cents for every $100 invoiced, they’ve been able to insure their entire book of clients. If a customer does go broke, they will be covered for 90% of what they are owed.
Distributor of Bodybuilding Supplements – Australia Wide
Headwinds remain in the retail sector. As interest rates rise, the disposable income consumers have to spend on health, beauty and fitness products decreases. The impacts have already been seen in thefailure of many gym franchises.
Our client supplies to a number of individual retailers and larger franchises. Through thorough negotations we were able to deliver a bespoke solution for them that covered their major franchise accounts only. It was these types of customers that would have a significant impact if they went broke.
Debtor Protect is a boutique and specialist trade credit insurance broker. We understand that every business has unique risks and we aim to tailor a solution to those risks. To find out how we can assist your business get in contact with us today.
Director, Debtor Protect. 0481 772 123
