I have been analysing some statistics we reviewed during the pandemic over the last little while. Many suggested there was going to be a terrible spike in insolvencies. However, we always forecasted that there would be a gradual rise, and the ‘tail’ would be longer than expected.
I think that right now we are in the thick of it, while insolvencies are on the rise, many businesses have managed it well and those that have Trade Credit Insurance have seen claims paid when these insolvencies have occurred. The below graph shows companies in New Zealand entering Liquidation, Receivership or External Administration from January 2022 to November 2023. While the increase looks moderate, on average in 2023 the number of companies failing per month has increased by 21%, compared to 2022.
Before I sign off for 2023, I would like to draw your attention to something that we have been working on this year, it’s a new product called easyAR. This new AR tool will help businesses save time and get paid faster. We think it will be a real game changer for some, especially those with Trade Credit Insurance policies – where it can generate a report for your overdues. You can view some more information here and we encourage you to book a demo.
I hope that everyone has a safe and prosperous Christmas break and I look forward to 2024!