Could you survive the Domino Effect?

When MG Rover was put into receivership a relatively large number of companies three or more levels down the supply chain failed or were severely affected.

As the world economy deteriorates the number of sectors hit by falling trade grows. Large retail failures like Woolworth can be attributed to a number of different causes, but the effect on the supply chain became apparent within days. Likewise the failure of MFI is symptom of the slowdown in home purchase which has caused the failure of a number of house builders, closely followed by roofers, plumbers, floorers etc

The contention that banks are steadily becoming more risk averse increases the probability that a significant bad debt will trigger a review of your credit rating and borrowing limits just at the time when you most need support.

Credit Insurance won’t replace your customer but it will help towards the cashflow deficit at this crucial time.