2019 - A year of volatility and uncertainty
- Global Economic Growth 'Now In Free Fall'
Global economic growth 'now in free fall' was the head line of Scott Barlow's article in yesterday's Globe and Mail. It summarized the fears of global manufacturing of an economic slow down in 2019. This article in addition with the announcement by Apple Inc. first quarter sales will be 9 billion less than originally forecasted due to reduced sales in China, and the on going effects of tariffs associated with the US - China trade war project a very uncertain world economy in 2019. Add the ongoing drama, fall out, of a looming Brexit and the picture becomes even more unsettling.
With such projected worldwide economic uncertainty and volatility has there been a time in recent memory when the payment of a corporates receivable may be delayed, subject to a protracted default or insolvency? I cannot think of one...
In this, the last stage of the business cycle, past claims experience at Coface shows corporates can expect to incur an unforeseen bad debt loss. It happens and it can happen to any corporate. National or Multinational, big and small. To protect a corporates receivable and balance sheet from such an unforeseen bad debt loss may I suggest a Risk Management Strategy incorporating an account receivable insurance policy from Coface.
A Coface account receivable insurance policy will not only protect a corporates insured sales & receivable from a bad debt loss. The policy will also provide an invaluable credit intelligence tool (data base) encompassing 80 million "monitored" credit files across a global foot print without equal. This tool can be utilized to assist corporates in making better informed, timely, credit decisions in an ever changing and accelerated business climate, and to take advantage of sales opportunities competitors may not have the wherewithal, nor courage to pursue. Last but by no means least the tool will also provide a second set of eyes to daily monitor client credit worthiness in very, very, volatile and uncertain times.