The butterfly effect
When a large business fails it can have a devastating knock-on effect for other companies, which is when solid credit insurance can prove invaluable, as Ewan Campbell discovers
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 debts
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@insuranceage.co.uk.
You are currently unable to print this content. Please contact info@insuranceage.co.uk to find out more.
You are currently unable to copy this content. Please contact info@insuranceage.co.uk to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@insuranceage.co.uk
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@insuranceage.co.uk
Most read
- JMG strikes its biggest deal of 2024 with BQI swoop
- Covéa cuts losses but underwriting deficit grows
- Pen inks £150m social housing capacity deal with SiriusPoint