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Time to consider Trade Credit Insurance

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The credit risk environment is continuing to deteriorate but did you know that we can provide an Insurance solution for you? It is called Trade credit insurance.

There are a few insurers who can offer this cover and it is certainly worth considering, particularly if you are dependent on your debtors paying up quickly to maintain cash flow. However, what happens if that debtor goes into receivership because they are unable to pay you?

It has been reported by insurers that there has been a 20% increase in the number of credit insurance claims and a 64% increase in the dollar value of claims for the past three months of 2012. The failures of Retravision Southern, Wow Electrical, Kell and Rigby along with the Hastie Group, have certainly contributed to this. With the recent failure of Darrell Leigh, it will be interesting to see what further impact there will be on claims for their Creditors who are owed money.

Many Businesses have stated that the amount of days outstanding has increased and they have been incurring bad debts in the last quarter. They believe that in the next three months, it will be even more difficult to get payments from debtors.

ASIC reports that for the year up to May, total corporate collapses have increased to 13.1% over the last year, which is 8.3% higher than during the GFC.

If you are generating at least $1,000,000 a year in turnover, then Trade credit insurance is something you should be considering.

When we see a client and review what kind of risks they have, this will include property, liability, or perhaps Marine Cargo insurance, we will also ask: ‘what about your trade receivables? Aren’t you worried about that? With premiums starting from $15,000 as a minimum for this cover, it may be a small price to pay to maintaining the cash flow of a business and leave the recovery of amounts owing to your business to your insurers.

Speak to us about this cover, CPR are the experts who will save you.

Last changed: Aug 13 2012 at 9:58 PM

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There are a number of reasons we have made this decision, but the primary reason is for what we believe is best for our clients.

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Employsure are providing a FREE Business Health Check to all our clients and gives you the opportunity to receive an analysis of the health and safety requirements in your workplace. Also. Employsure  will review your employment agreements as well as your wage rates helping you to avoid workplace claims.

Ordinarily this would cost you at least $1,250 but because you are a CPR Insurance client, it is free!

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A Wages Adviser will review your rates of pay and produce a Wage Check report.

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A Document Consultant will review an employment agreement and provide recommendations.

The review will highlight compliance issues with the Fair Work Act 2009 as well as best practice

The report will make recommendations to achieve compliance and provide protection to your business.

This will remove any areas of potential dispute and risk

So what do you have to lose? Contact us on 07 3123 1137 and arrange 

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