Top 5 Industries That Benefit Most from Trade Credit Insurance
This isn’t an exhaustive list, but here are the top five industries that get the most out of trade credit insurance:
1. Construction (obviously)
Number 1 in Australia for the most policies and claims is the construction game. And it’s not just about protecting yourself—credit insurance helps building and construction businesses grow. It gives you the confidence to take on bigger projects you might have avoided before, knowing you’re covered if things go south.
Recent Insolvency: Quasar Constructions (~$60m owed)
2. Retail
Retailers often give customers credit, but when payments are delayed or missed, it can cause cash flow headaches. With trade credit insurance, retailers can stay on top of things, keeping their shelves stocked and their business running smoothly.
Recent Insolvency: Mosaic Brands (~$250m owed)
3. Manufacturing
Manufacturers usually have big upfront costs and long payment cycles. A single bad debt can throw a spanner in the works. Trade credit insurance helps minimise those risks, so manufacturers can focus on ramping up production without worrying about unpaid invoices.
Recent Insolvency: GDK Group (~$78m owed)
4. Wholesale and Distribution
In wholesale and distribution, the volume of transactions is high, and profit margins are tight. Unpaid invoices can hit hard. Trade credit insurance protects these businesses, helping them expand and maintain solid relationships with suppliers.
Recent Insolvency: The Essential Ingredient
5. Export
Exporters face all sorts of challenges, like currency changes and political instability. Trade credit insurance not only shields them from the risk of non-payment but also gives them the confidence to explore new markets overseas.
Recent Insolvency: Salena Estate Wines (~$24m owed)
Suitable for All Industries
While these five industries are prime examples of where trade credit insurance can make a significant difference, it’s important to remember that this type of insurance is beneficial for virtually any business that extends credit to its customers. Whether you’re in construction, retail, manufacturing, wholesale, export, or any other sector, trade credit insurance can provide the financial security needed to grow and thrive.
Reach out to us today to discuss how trade credit insurance can help your business, or request a quote below:
