The economy could see more businesses becoming insolvent, with the number of trade credit insurance claims shooting up 41% in the December quarter from a year earlier.
Data collected by National Credit Insurance (NCI) puts the value of each claim at about $97,000.
Last year insurers paid out $64 million in trade credit claims, which was up 19% from 2017.
Our findings reveal a higher level of defaults from overdue payments and collection activity, NCI MD Kirk Cheesman said.
Generally, an increase in these areas typically results in increased insolvency activity within 6-12 months.
The data indicates businesses are becoming caught up in the patchy economic conditions, which saw many retailers closing down during the December quarter…
Read the full article at: https://www.insurancenews.com.au/daily/trade-credit-claims-spike-points-to-growing-insolvency-risk