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You are here: Home / Archives for Trade Credit Insurance

September 21, 2016 by markkreling

Shipping Line Collapse “Like a Nuclear Bomb” to Exporters

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The collapse of Hanjin Shipping is a “huge nuclear bomb” that will have a far-reaching impact on the shipping industry, the supply chain and globalisation, according to Seaspan Corporation chief executive Gerry Wang.

As I wrote yesterday, the South Korean shipping giant has applied to South Korean courts for protection against it’s creditors as it lost support from it’s banks.

In an interview with Bloomberg’s Trending Business, the containership owner’s chief suggested the line’s demise was “like Lehman Bros” had been to the financial markets in 2008.

“You are talking about $120bn worth of goods on ships that are stuck… there is a material impact to the supply chain and people are suffering from the consequences,” said Mr Wang.

Hanjin has finally published details of the status of its 97 owned and chartered container and bulk vessels as they attempt to avoid arrest by creditors around the world. Many of the vessels are now running low on supplies and bunker fuel.

 

The aftershocks of the Hanjin crash are being felt by thousands of service providers around the world, many of which could face closure as a consequence of unpaid debts.

Moreover, small and medium-sized shippers could also face ruin from goods being caught up in months of legal battles over liens placed on Hanjin containers by creditors.

For the full details read the article at theloadstar.co.uk

To discover more about Marine and Trade Credit Insurance contact RDi Insurance for a full and confidential discussion. We can provide solutions from leading New Zealand and International Underwriters to protect your business and balance sheet from going down with the ship.

Filed Under: Blog, Business Tagged With: bankruptcy, insurance, Marine, marine cargo, marine insurance, Trade Credit Insurance

August 5, 2016 by markkreling

Trade Credit Insurance: Secure Your Business

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 Failed Electronics retailer Dick Smith, a name synonymous with electrical sales in NZ, left debts of over $22 Million to unsecured creditors, mainly small suppliers.

As a supplier to any company, for Goods or Services, you can use Insurance to protect your Balance Sheet and stop your debtors dragging you with them.

When a big company fails, there are consequences for heaps of smaller companies – and employees. The collapse of Mainzeal a few years ago also left a lot of Sub Contractors out of pocket and even unable to work as their gear was locked away on closed sites for weeks afterward.

But it doesn’t have to be a major company failing that can cause small companies problems. Even a receivership or liquidation that doesn’t make the headlines can have disastrous consequences on businesses that are owed money for goods and services supplied.

That is where Trade Credit Insurance can become really vital to a businesses’ survival.

We as Kiwis are really good at insuring our stuff – our cars and homes and businesses – but unless a Balance Sheet is Insured with Trade Credit insurance it can all still go to waste.

Trade Credit Insurance doesn’t just cover full scale problems, like your Debtors going in Receivership or Liquidation, but also if they just do not pay up in timely fashion. Most policies are able to pay out after a certain time has elapsed – often about 4 months.

This can be the difference in keeping your Creditors happy and your lenders onside.

Trade Credit can be a real benefit in your relationship with your bank. The more comfortable lenders are with your security position, the better their terms and the less onerous their requirements. They may release Directors Guarantees or some other security if you cover Trade Credit.

If you have high levels of exposure to a few Debtors, or you Export overseas – and would like to further expand your markets – the security that a Trade Credit Insurance provides gives you the confidence and the security to work, to grow and retain your Peace of Mind.

Currently Trade Credit suits Business with a turnover approaching $2 Million or more, and costs around $10k.  This should be tax deductible, both for GST and Income Tax – consult your Tax Advisor for full details.

More products are being released, to support smaller businesses and tradies and I’ll be updating our offering once Insurers change their products. Watch this space, and keep in touch.

When you’d like to know more, contact RDi here for more info on Trade Credit Insurance

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Filed Under: Blog Tagged With: Trade Credit Insurance

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I am a RFA (Registered Financial Adviser) and my Disclosure Statement can be viewed here.
Rodney District Insurance Ltd is a member of Financial Services Complaints FSCL for any disputes that arise that cannot be resolved initially.

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