A Word from the Managing Director: Kirk Cheesman
The current business environment and impacts of COVID-19 are providing various challenges to business communities around the world.
It is anticipated by many economists that, despite the efforts of governments to support their business communities and individuals, there will still be significant fallout relating to trade credit risks into the future.
We have already seen insurers ‘de-risking’ their portfolios and focusing on industries such as travel, hospitality, airlines, non-food retail, labour hire and automotive which, due to lockdown restrictions, will have a long-term impact.
On a positive note, many clients acknowledge growth and good sales activity during March and April. A positive sign many industries continue throughout the current conditions and expect work to pick-up quickly when lockdowns are relaxed.
The timing of a total relaxing of conditions by federal and local governments is the unknown, although they are currently providing some forecasts with their roadmaps.
However, the most recent trade credit risk index acknowledges the level of non-payments prior to and during the lockdowns has increased and therefore credit management remains a critical element to managing businesses’ risk now and into the immediate future.