March 16 2018
Figures released today by the Association of British Insurers (ABI) show that claims paid out by trade credit insurers are running at their hightest level since 2009. Claims due to non-payment of business debt were £225m in 2017, or £4.3m a week.
More than 11,000 claims were made during the year, and the ABI points towards a number of high profile insolvencies during the second half of 2017 as being at the root of the issue.
Commenting on the figures, Mark Shepherd, Assistant Director at the Association of British Insurers, said
"The failure of a number of high profile businesses, such as Monarch Airlines and Palmer and Harvey in 2017 and the recent collapse of Carillion, dramatically highlights the value of trade credit insurance. With over £4 million paid to businesses every week, trade credit insurance can make the difference between survival or demise following non-payment by a customer."
Samantha White, CEO of My Credit Controllers, said
"The best way to reduce your risk of getting caught with money owing from a company that has gone into insolvency is to proactively manage your debtor book down to the lowest possible value by collecting in all your invoices quickly and efficiently. Fortunately it is possible for businesses of all sizes to outsource their credit control function to dedicated specialists."
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