If you’re a business owner, chances are you’ve likely had your eyes and ears tuned to the changes in the Canadian economy and rising interest rates. Unfortunately, the projection for the market this year is not good.
In October 2022, the Royal Bank of Canada released a report which predicted a recession for Canada as early as the first quarter of this year. They also predicted that Canadian Households could lose up to $3,000 of buying power this year.
What is a recession?
A recession is “a significant, widespread, and prolonged downturn in economic activity.” Even a recession that lasts only a few months could take a country years to recover from.
Unfortunately, the economy and unemployment rates often enter into a difficult cycle: as demand lowers, employers lay off staff, who have reduced buying power, and demand continues to decline.
In fact, with the economic slowdown happening across the country, many bankruptcies are predicted to happen to businesses of all sizes. You can protect your business with trade credit insurance, helping ensure that, no matter what happens, your Accounts Receivables will get paid.
How does Credit Insurance help in a recession?
Recessions can also lead to a drop in consumer confidence and unpaid bills. If you’re not protected with credit insurance, your business may risk losing substantial revenue.
If you are a business that delivers products or services and are at risk of unpaid invoices, we can help protect your business.
Invoices may end up unpaid for several reasons. Our Accounts Receivable Insurance can protect you from unpaid invoices due to the following:
- Chapter 7/Chapter 11
- Refusal to accept goods
- Non-payment and past-due accounts