Over 7,700 Australian businesses have gone bust this financial year. This is up over 93% on data from the last 3 years. The below case studies outline how a credit insurance policy can protect your businesses’ cashflow.
The challenges in the Australian economy are well and truly having an impact on the survival of Australian businesses. The headwinds remain, so suppliers must be doing all they can to protect their own cashflow from bad debts.Trade Credit Insurance remains the strongest form of protection available to protect a suppliers own cash flow. Here are some examples of how we’ve recently helped our clients navigate these tricky times and mitigate credit risks.
Our client supplies bespoke components to air-conditioning contractors. Because of the work they do they are legally required to complete projects, even if the insurer becomes concerned with the credit risk of the customer half way through the job.By properly understanding our clients business and their risk, our clients policy was correctly set up to ensure they could keep supplying to their customer and complete the project with adequate insurance coverage.Eventually the buyer went broke, however our client was entitled to a claim for all the funds they weren’t paid.
Our client supplies to commercial and residential builders. They were owed a significant amount of monies by a major commercial builder in Sydney. The client had been pursuing the debt via collection agents and solicitors, however their requests were going unanswered by the builder.By tailoring their policy upfront and negotiating with their insurer, we were able to organise an early settlement of the claim, even though the builder hadn’t gone insolvent. Despite paying the claim early to help the clients cash flow, the insurer and their solicitors continued to chase the funds owed on behalf of the client to maximise the clients position.
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.
Ian MarkusDirector, Debtor Protect. 0481 772 123
Manufacturer to the Air-Conditioning Sector – Cover Maintained Despite Buyer Solvency Queries
Our client supplies bespoke components to air-conditioning contractors. Because of the work they do they are legally required to complete projects, even if the insurer becomes concerned with the credit risk of the customer half way through the job.By properly understanding our clients business and their risk, our clients policy was correctly set up to ensure they could keep supplying to their customer and complete the project with adequate insurance coverage.Eventually the buyer went broke, however our client was entitled to a claim for all the funds they weren’t paid.
Supplier of Doors and Windows to the Construction Sector – Early Claim Payment
Our client supplies to commercial and residential builders. They were owed a significant amount of monies by a major commercial builder in Sydney. The client had been pursuing the debt via collection agents and solicitors, however their requests were going unanswered by the builder.By tailoring their policy upfront and negotiating with their insurer, we were able to organise an early settlement of the claim, even though the builder hadn’t gone insolvent. Despite paying the claim early to help the clients cash flow, the insurer and their solicitors continued to chase the funds owed on behalf of the client to maximise the clients position.
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.
Ian MarkusDirector, Debtor Protect. 0481 772 123
