Keeping our clients informed.

Latest news and press releases

What’s been happening in the world of trade credit? See here for all the latest news, articles and events.

Top-Up Insurance: The Benefits

One of our meat clients held a multi-million dollar limit over their largest customer up until August 2020 when their insurer’s appetite to cover this customer changed and they imposed a 75% reduction on the limit overnight. NCI repeatedly appealed this decision based on supportive financials, strong trading history between our client and their customer, coupled with this particular client having an excellent track record at collecting their trade debts.

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A Word From The Managing Director: Kirk Cheesman

Welcome to 2021, another stop-start year for businesses? I think by now we have all become accustomed to mini lockdowns, circuit breakers and working from home.

2021 is another year of uncertainty. So far, due to government support and protection mechanisms, there have been minimal insolvencies during the Covid period, but will this continue? How much did Jobkeeper and ATO/Bank support relieve the “cash flow” pressure for businesses and, once these are wound back, will we see a new wave of insolvencies and higher unemployment?

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Trade Credit Risk Index Q4

Government intervention gives reprieve to Credit Risk… but what about 2021?

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Review of Australia’s Privacy Legislation

At the end of December last year, the Attorney-General announced a review of Australia’s Privacy Act to determine to what extent it is protecting and empowering consumers and best serving the Australian economy.

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ASIC Company register update – July to September 2020

The ASIC company register has released the following breakdown of activity between 1 July and 30 September 2020:

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A Word From The Managing Director: Kirk Cheesman

As we approach the end of 2020, business confidence looks to be increasing with many industries performing well and most lockdown restrictions now removed. NCI’s latest Trade Credit Risk Index reported a sharp decline in credit risk, mainly due to lower incoming claims and collections activity, plus a reduction in Insurer credit limit actions.

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Trade Credit Risk Index Q3

Government measures impact insolvency and collection results

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What is a PMSI?

A Purchase Money Security Interest (PMSI) is defined by the PPSA as occurring where ‘collateral secures its own purchase price’.

This happens when a supplier sells their goods subject to a Retention of Title right – it also happens when goods are sold out of a Consignment Stock arrangement or Leased.

The PMSI designation is important because it allows the supplier to enjoy a ‘super priority’ over the goods they are selling that will rank higher than any bank’s general security interest even when the bank’s interest was lodged earlier.

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PPSR – When should I be lodging a registration?

Once a liquidator is appointed to a debtor, they are allowed to ignore any security interests registered during the 6 months leading up to their appointment if they hadn’t been lodged within 20 business days of the security agreement being formed.

In a trade credit context, the security agreement is usually the completed credit application incorporating your Terms & Conditions (eg, your Retention of Title right).

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PPSR – Identifying Grantors

The PPSA has very strict rules when it comes to identifying grantors and, if your registration does not show up on a search conducted in accordance with those rules, your registration will almost certainly be deemed invalid.

This was confirmed in a high-profile judgment from the NSW Supreme Court in January 2017 when it was decided that a registration by Alleasing P/L against OneSteel Manufacturing’s ABN instead of its ACN was enough to render the registration ineffective even though there was no doubt as to the entity concerned.

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