NCI Minute – May 2017
A word from the MD
A milestone reached, thanks to our loyal clients
I’m pleased to announce in March 2017 NCI’s gross written premium broke the $100,000,000 mark! This has been the result of hard work and dedication from…
all employees, loyal clients and suppliers. This milestone makes NCI one of the leading specialist trade credit insurance brokers in the world.
It’s great to know NCI is playing it’s part investing in an industry which protects our clients from bad debts and helps to grow their business.
Index score on the rise
Record claims and collections have contributed to a rise in the NCI Index for Q1 2017. Some large-scale insolvencies in the building, construction and hardware sectors remind us to be wary of the risk of defaults and late payments. To view the whole index, click here.
A word from Jeff George – National Service, Risk and Compliance Manager
An expensive reminder
Never has strict compliance with terms and conditions of the policy been more important than in the current environment.
In March alone there were 157 claims sent to NCI, which is the highest month of incoming claims since the height of the GFC. The building and construction sector continues to dominate the landscape following a string of recent failures including Cullen Group, Diploma Constructions, Builtoncorp, Watersun Homes and Bloomer Constructions.
In a period of high volume claims (both in number and dollar value), it is important to remind you of such key factors as:
- Trading within credit limits
Staying within the maximum terms allowed under your policy
We remind you to:
- Consult with NCI if you are looking to enter into a repayment plan or re-schedule a debt
If electing to trade on a cash basis, this may have salvage implications under your policy hence we urge you to discuss such scenarios with us
It’s all in the detail…
On the last day of January, the NSW Supreme Court ruled that Alleasing Pty Ltd had to lose over $23 million in property to the administrators of OneSteel Manufacturing Pty Ltd. The reason? Alleasing’s registration on the PPSR was lodged against OneSteel’s ABN instead of their ACN!
This serves as an important reminder to ensure your security interests are registered in strict accordance with the PPSA’s rather convoluted rules.
NCI’s Debtor Wash and registration process is designed to ensure Grantors are identified in accordance with the PPSA’s rules and we are always happy to help.
To request a wash on your debtors, contact us at firstname.lastname@example.org.
Country Risk Map
Euler Hermes have released their Country Risk Map for Q1 2017. The heat map looks at non-payment by companies in their respective country. There is further information on changes to risk and in-depth country reports.
Click here to see the Country Risk Map in more detail.