The ongoing impact of the current global climate and rising energy costs continues to cause numerous challenges for the Northern Ireland economy and our construction industry.
The construction sector remains the most significant contributor to insolvency numbers in the UK and Northern Ireland, with February 2022, seeing 307 construction insolvencies – an increase of 142% on the same period last year. This trend has continued into QTR 2 and will continue into 2023. Given the challenging environment within the construction sector, trade credit insurance can help provide confidence, knowing your business has the correct protection in place in the event of payment default by a customer.
Benefits include enhancement of credit management procedures for your business and greatly improves access to finance facilities from banks and funders etc. It also provides increased market intelligence on your customers / prospective customers and supports positive business growth.
Claims are paid out within a short period of time, which helps the working capital replacement aspect. And, ultimately, trade credit insurance greatly reduces the use for bad debt reserve.
Trade Credit Insurance will add extra security in a very volatile world. Trade receivables is one of the biggest assets for a business, but this can turn into a liability very quickly if not looked after appropriately. That’s exactly what trade credit insurance does – it protects your business’s trade receivables.
Having Trade Credit Insurance in place gives much needed peace of mind and protects your business’ future, while allowing your business to grow safely during these volatile times.
To discover how a trade credit insurance policy could benefit your business call Mark McAllister for a brief chat on: +44 (0)7467441974 or email him at: mark.mcallister@ablinsurance.co.uk.
