166% Rise in Cost of Trade Credit Insurance Claims

Alan in Late payments | No Comments

Late payment is no myth - more and more companies are suffering the late payment syndrome.

As late payment bites the ABI figures show that trade credit insurance remains a vital lifeline to businesses that are hit by the effects of the recession.

In Quarter 1, 2009: The total number of claims was 9,213, an increase of 48% from 6,225 in Q1 2008 and the total value of claims was 316m, an increase of 166% from 119m in Q1 2008.

Late payment and poor credit control is raising concerns among credit insurers and invoice discounters.

Trade credit insurance claims are a good indicator of what is happening in the UK economy and how late payments is affecting UK businesses. Clearly, the economic situation remains very tough and highlights the need for greater vigilance with late payment and the need to ensure effective credit control.