Business, consumer insolvencies hit 15 year high in 2024

In Wednesday's, February 5th edition of the Globe and Mail, the article, "Business, Consumer Insolvencies hit a 15 - year high in 2024", appeared ominously. Given the current context in the North American economy, with the threat of 25% Tariffs by the Trump Administration, on all Canadian goods exported to the USA, Canadian business insolvencies will certainly increase even more in 2025, should the tariffs go into effect. Considering the Tariffs are expected to reduce Canadian GDP by 3% to 4% and trigger a recession.

In the event of #recession, is your business prepared to sustain the interruption in Cash Flow caused by the unforeseen #insolvency of one or more of your business partner - customers? If not, "Now" is a good time to consider a Trade Credit Insurance policy to mitigate & manage your account receivable risk to protect your balance sheet.

Since capacity in this environment will be a hot commodity and highly sought after, my suggestion colleagues, is you contact your trusted Trade Credit Insurance advisor and put coverage in place ASAP. You don't want to be the Finance Director explaining to your President and or Board why you were not insured for that loss...