2020 saw unprecedented economic decline brought on by the COVID-19 pandemic. Whilst there were some businesses that flourished, many may continue to struggle in 2021. The various Government loan schemes have in many cases only served to keep businesses afloat that otherwise may have failed and whilst one can argue that was the intention, there is growing concern that this has only served to create a mass population of “zombie1” businesses who may have no real idea whether they remain viable or not.
It is expected that we will see a significant rise in business failures this year. There is no certainty that existing customers you have traded with successfully prior to this year will be as resilient going forward. Even if they are, they may not be immune to the impact of one of their customers failing to pay them and the “domino” knock on effect that it could have on their ability to pay you.
Credit Insurers remain open for new business and continue to offer competitive terms. In addition we have seen a period of innovation, so there are new products and solutions to suit most requirements from single invoice cover, key customers cover to excess of loss covering domestic to export sales.
The Gallagher Trade Credit team is well positioned to assist you in finding an appropriate solution. We have helped guide clients through previous recessions and economic decline and by providing innovative and creative risk solutions to enable them to successfully navigate the uncertainty by protecting their balance sheet from the impact of bad debts.
Watch our webinar ‘Credit Insurance: Today and the Future’ now available to view on-demand.