Picking winners in the current climate is more important, but harder than ever.
PBS Building and Scotts Refrigerated Logistics were two very established businesses that that have recently fallen victim to a challenging economy. Picking winners in the current climate is more important, but harder than ever.
For a long time, business owners and financial decision makers have been able to use external data to help them decide who to trade with. Reference checks, credit bureau data, and financial data have been helpful and popular tools in helping to determine which customers will be able to reliably pay their bills on time. There have been proven methods available to help us find winners.
We’re in a post Covid world now, where the business landscape is dealing with challenges it hasn’t had to before. The traditional rule book and form guide has been thrown out the door. A business that once looked like a sound bet, now may not be such a sure thing.
We’re in a post Covid world now, where the business landscape is dealing with challenges it hasn’t had to before. The traditional rule book and form guide has been thrown out the door. A business that once looked like a sound bet, now may not be such a sure thing.
PBS Building went into administration last week owing over a reported $25 million to suppliers. These are largely construction companies in QLD and NSW.
– PBS had reported a $3 million + profit in FY 2021, and only a modest loss in FY 2022.
– PBS had been established for over 20 years and had turnover in excess of $90 million. For many they were considered a safe bet.
– The 2022 balance sheet suggested the business was sound, and would be able to survive the challenges that the current economic challenges would throw at it.
– PBS had reported a $3 million + profit in FY 2021, and only a modest loss in FY 2022.
– PBS had been established for over 20 years and had turnover in excess of $90 million. For many they were considered a safe bet.
– The 2022 balance sheet suggested the business was sound, and would be able to survive the challenges that the current economic challenges would throw at it.
Times Are Changing
Things appear to have changed dramatically in the last 9 months. Like a lot of businesses, PBS was fighting supply chain breakdowns, rising material costs, challenging weather conditions and rising interest rates. Now, more than ever it’s important for suppliers to have protection against bad debt, and customer failure.
Trade credit insurers are becoming more and more prudent in underwriting risks across all sectors. By partnering with an insurer and their database of information you will give your business the best possible chance to avoid a loss in the first place. If the worst does happen, and your customer goes broke, you’ll be protected for up to 90% of what you are owed.
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.
Contact us today to find out how we can help protect your business.
Contact us today to explore our comprehensive credit insurance solutions
Don’t leave your business exposed to payment risks. Act now and enquire about our tailored credit insurance options.
