Trade credit insurance claims rose by nearly 17% in the last three months due to rising levels of overdue payments.
Trade credit insurance broker National Credit Insurance revealed that the number of overdue payments in the first quarter of 2013 meant that trade credit insurance claims had crept up over the last three months. Electrical and building/construction accounted for the majority of claims placed.
Even more trade credit claims may be on the horizon, too, as NCI also reported that an increasing number of companies failed to meet their trade credit payments in the second quarter of 2013. The broker stated that the number of overdues in Q2 grew by 9%.
More surveyed credit managers experienced debtor insolvencies compared to the last quarter. Around 50% of credit managers surveyed have experienced five or more debtor insolvencies in the last three months compared to 43% in Q2.
ASIC reported that 1,556 insolvencies were registered in May 2013, the highest amount of insolvencies recorded since March 2009. Last quarter saw a dramatic rise in debtor collection activity as companies sought external support to in collecting overdue debts.