More trade credit insurance policies are being taken out, says Reuters, revealing that insolvencies across the UK are at their highest level in five years. Government figures indicate an increase of 12% in insolvencies in the second quarter (2019) compared to a year earlier.
Many companies are concerned about the impact of Brexit and potential collapse of supply chains, prompting a spike in the purchase of trade credit insurance; the most since the 2008 financial crisis, demonstrating that many are feeling uneasy about the current political uncertainty.
UK insolvencies are expected to “rise by 15% next year under a no-deal Brexit”, and companies should rightly be concerned about the challenges ahead. With the retail, agriculture and construction sectors, among others, being most ‘at-risk’, it’s vital that businesses consider the effect that lack of insurance and Brexit (deal or no deal) could bring to SME growth.
SMEs worried about potential insolvencies of partners need to ensure that they receive suitable, professional advice from a specialist who understands the challenges of owner-managed SME businesses – like The Channel Partnership – rather than rush to buy and risk making a poor decision.
With our help, you can be sure that your goods or services will be protected in the wake of a no-deal Brexit. Contact us today on 01275 817320 to find out more.