Bad debts can be a massive issue in the building game.
Insolvency, administration, bankruptcy and receivership are all commonly heard words for contractors in this space.
You might be able to survive a $20k unpaid debt when a builder falls over, but what if that debt was $200k? Could your business survive?
Thankfully you can protect yourself with trade credit insurance.
We should start by saying that credit insurance is not for everyone. Premiums start from around $10,000 per year, so the cover is typically used only by companies turning over at least a few million dollars per year.
Unfortunately there are no insurance products available to help the smaller contractors turning over a few hundred grand a year (which is most Trade Risk clients), but if you are up in the 7-figure range it is certainly worth considering.
For more information about trade credit insurance please call us on 1800 808 800.
