When the Italian company, Parmalat, went bust, it caused many secondary failures among farmers and distributors. An unexpected collapse like this proves the value of trade credit insurance. The gross claims following Parmalat amounted to a very substantial figure. Unfortunately, the small businesses supplying them had no cover.
The situation of small-to-medium enterprises (SMEs) in the UK is very similar. They tend to have very unsophisticated credit management and are poor at chasing bad