As the UK eases out of lockdown and government schemes draw to an end, there has been an increase in policies being taken out for credit insurance. In light of this, Ravenhall Risk Solutions wanted to revisit a topic looked at previously in our blog – ‘What is trade credit insurance?’.
Within this article, Ravenhall introduced trade credit insurance and how the policy can be applied. As businesses still face high levels of uncertainty surrounding the increasing cost of supplies, furlough schemes, social distancing and how business can return to ‘normal’, we may see the level of insolvencies surpass the previous global financial crisis.
The BBC recently reported about the effected ‘long covid’ and debt in the UK. Read this article here.
There is no doubt that many businesses have had to change and adapt since the start of the pandemic. Companies that prepare themselves against the longer-term effects of Covid-19 will stand a better chance of survival. The team at Ravenhall Risk Solutions have access to a global data network and predictive intelligence data through Euler Hermes. This data can support businesses and deliver accurate and proprietary information, providing them with the confidence to trade and grow confidently through these unprecedented times.
Understand more in this short video:
Since the start of the pandemic, in the UK we’ve seen a polarisation in terms of country and sector performance. While some sectors may have fared well throughout lockdown, others have struggled. The polarisation will continue and the gap could widen as the year progresses.
We understand that unpaid rents in the UK have reached £6bn, which is worrying. Inflation and raw material price increases are points of attention too.
Some of the current government schemes are due to come to an end in July, as well as the start of repayment on ‘bounce back’ loans. This could see even more business closures and bad debt and increase the need for credit trade insurance.
If you’re conscious about recovering bad debt, or protecting your business to enable you to grow, contact our team of Chartered Insurance Brokers who can talk to you about this type of policy.