The Carillion Collapse
Don’t let your business become a victim of non payment of bills
Carillion going into liquidation will have a massive affect on many local SMEs caught up in its supply chain. It has been reported that Carillion spent over £900m with local suppliers in 2016 and used an extensive network of small firms, who are now waiting to learn if they will be paid. One industry group estimates that up to 30,000 firms are owed money by Carillion.
Sadly many of these firms may not be paid as SMEs will be last in line as creditors and so small firms could be looking at total losses amounting to hundreds of millions of pounds
So what can local SMEs do to protect themselves in the future particularly if their business is reliant on contracts from major firms? Trade credit insurance can play a vital role in helping small businesses through these challenging circumstances and guarding against the unexpected.
What is trade credit insurance?
Trade credit insurance provides cover for businesses if their customers that owe money for products and services do not pay their debts, or pay them later than the payment terms dictate. This insurance protects businesses against commercial risks that are beyond their control and helps them to grow by minimising the financial implications of sudden or unexpected customer insolvency. Trade credit insurance gives businesses the confidence to extend credit to new customers and improves access to bank funding, often at more competitive rates. Trade credit insurance is for products and services that are due within 12 months.
To learn more, you can speak to your usual contact, or get in touch using the form below: –