If you’ve even so much as glanced at a newspaper or flicked on the evening news lately, you’re likely aware of the current state of the economy – and it’s not a good one. Bankruptcies are on the rise, and businesses are closing their doors left, right, and center.
If your company works with larger corporations, you might think you’re safe; that you don’t need credit insurance because companies like Walmart would never go under. Big box stores survived the pandemic, didn’t they?
Unfortunately, that’s not always the case. We don’t always know what’s going on behind closed doors when we’re looking in from the outside – and sometimes, even from the inside it’s difficult to know for sure.
Recently, Americana (the ‘Walmart of Brazil’) announced bankruptcy. It turns out that internal employees were fraudulently representing their finances. This was a company that no one thought could fail, and so many, many suppliers lost money because they were not insured against them.
It kind of gives Titanic vibes, doesn’t it? The Unsinkable Ship that sunk?
We’ve seen the same happen with major stores in North America, too – think Target, for example.
This is why it’s important to have credit insurance. Even when companies seem Too Big to Fail, they can and, unfortunately, often do.
What is Credit Insurance?
Credit insurance is protection from a buyer’s financial inability to meet their trade receivable obligations due to:
- Chapter 7/Chapter 11
- Refusal to accept goods
- C.C.A.A. (Canadian creditor protection)
- Non-payment (past due accounts)
Take Advantage of the Expertise at GSA
At GSA, we don’t just sell you the insurance. We are there with you every step of the way, so if you do need to start the claims process, you are supported throughout. We will help you review the paperwork and ensure everything is in order, so you receive what you are owed as fast as possible.
Watching a buyer fail and then having to initiate a claim against them can be frightening, overwhelming, and stressful – but it doesn’t have to be. We’re here to help.
If you’re not properly set up with credit insurance, or you’re not sure what kind of coverage you have, send us a message today and let’s chat about your case.