TABMA Trade Credit Insurance - Program launches in Victoria

This month saw IMC Trade Credit Solutions and TABMA (Timber and Building Materials Association) launch their successful Trade Credit Insurance programme into Victoria, meaning it is now available to members nationally. 

The programme is designed and managed by IMC and offers completely unique benefits that are not available anywhere else in the Australian market.

All businesses supplying on credit terms are exposed to bad risks and recently that has been particularly true for businesses linked to the construction industry. This programme provides access to a trade credit policy that is designed for the industry and provides additional benefits which enhance the policy and reduce costs.

Major Benefits:

•  3-12 month periods of insurance – subject to terms and conditions

•  Very competitive 12 month policy premiums

•  A low shared excess amongst all Insured members

•  Exclusion of part of turnover, saving on premium costs

•  90% Indemnity

•  All Limit Administration Charges and Discretionary Limit report 

   costs absorbed by IMC

•  100% reimbursement of Collection and legal costs for Insured buyers – subject to terms and conditions

If your company is in the timber or building materials sector then contact IMC Trade Credit Solutions to find out how you can gain access to this programme.

www.imcnewbury.com.au

Is there a gap in your insurance cover?

With the end of the financial year arriving many businesses will be undertaking a review of their insurance policies to ensure all major assets and risks are covered. However, many businesses fail to insure one of the largest assets in their company, their debtors ledger. Businesses trading on credit terms are at risk of suffering a bad debt due to non-payment from their customer. Trade Credit Insurance can fix this.

At IMC Trade Credit Solutions we speak to businesses every day with the aim of finding the right policy to protect against bad debts. Having robust credit procedures is certainly the right thing to do but even this cannot guard against the insolvencies that no one sees coming.

You insure every other major asset in your business so why not your debtors?

Last year we saw some major businesses go into administration that few of us were able to predict and this year is no different. So far we have seen Mothercare, Gunns Timber and Rosella Foods go under, who will be next?

Trade Credit Insurance provides you with peace of mind in knowing that you are protected against non-payment. This allows you to trade with confidence with new and existing customers and grow your business.

IMC are a specialist Trade Credit Insurance Broker and therefore able to provide the right policy structure and management tools to support your business. We have an intimate knowledge of the marketplace and experience across all industries in Australia.

If you want to fill the gap in your insurance cover speak to one of our knowledgeable staff to find out more.

www.imcnewbury.com.au

PPSA – THE TRANSITIONAL PERIOD HALFWAY MARK HAS PASSED!!

The Personal Properties Securities Act (PPSA) came into effect on 30 January 2012.  It consolidated over 70 existing Commonwealth, State and Territory laws and registers regarding personal property security interests under the one national system.

The PPSA allowed a 24 month transitional period to register customers where you had an existing security interest. (Ie. ‘Retention of title’ clause in your contract).  This period is due to expire on 30 January 2014.

The halfway mark has now passed!

 

Registration of transitional security interests direct on the government website during this period is free.  Once the period expires, the full government fee of $7.40 per registration (for 7 years) will be charged.

To avoid these fees – in some cases $1,000’s - it is important to give serious consideration to how you intend to protect your interests. 

The IMC PPSR Management Portal is an online solution for companies and provides a business-to-government interface to bulk upload your debtors and manage the ongoing administration of registrations, amendments, discharges and more.

 

The package includes:

·         Data matching/cleansing

·         Bulk PPSR registration

·         12 months access to the PPSR Portal for ongoing registrations, amendments, discharges etc.

·         Access to ASIC / PPSR Searches via the portal

·         Billing on 30 day terms

Please contact us for more information: www.imcnewbury.com.au   or 1300 665 240 (Toll free)

Please note: the interpretation of ‘transitional period’ has been tested over the past 12 months, with some insolvency practitioners ignoring invoices generated after 30 January 2012 if a valid PPSR registration is not in place.

To avoid uncertainty we recommend registering your interests now!

Can you predict the future?

Can you predict the future?

• “We’ve never had a bad debt and don’t expect to…”
• “We have great relationships with our clients; they pay their debts…”
• “We have strict collection procedures in place…”

We often hear the above comments and then, following the insolvency of a customer, have the business approach us for Trade Credit Insurance to prevent against similar future losses.

A client of IMC Trade Credit Solutions, in business for 25 years and never having had a bad debt, suffered a $1 million loss as a result of a client not paying for stock on location at various points around Australia.   

The claim was paid in full, managed by IMC, and the lost cash-flow was replaced. As an added benefit, through a strong retention of title clause the client was able to recover much of the stock covered by the claim and thereby reduce their overall loss substantially.

The client really saw the value of Trade Credit Insurance.

With ongoing economic volatility here and overseas and the collapse of a number of high-profile businesses last year, Darrell Lea, Rosella Foods, Retravision Southern, Kell & Rigby, St Hilliers, Hastie Group etc., the incidence of bad debts in Australia remains on the rise. January has already seen some more large household names fail.

Trade credit insurance can help businesses mitigate the risks for businesses should their customers fail and leave a trail of unpaid debts.

In the vast majority of cases insolvency is the trigger for a claim.  The remaining small percentage is usually triggered by “protracted default”, the continual non-payment of debts for reasons other than formal declared insolvency.

Any business offering customers credit terms, whether within Australia or exporting to overseas markets, can benefit from Trade Credit Insurance. 

Trade credit insurance can mean the difference between a business failing as the result of non-payment by a key customer and remaining a viable going concern.

Contact IMC Trade Credit Solutions for more information.
www.imcnewbury.com.au

www.imcnewbury.com.au: Relying on the "Transitional Provisions" of the PP...

www.imcnewbury.com.au: Relying on the "Transitional Provisions" of the PP...: The advice below underlines the uncertainty of the PPSA and its interpretation. This is the reason why we advise clients to register their...

Relying on the "Transitional Provisions" of the PPSR may be a risky move.

The advice below underlines the uncertainty of the PPSA and its interpretation.

This is the reason why we advise clients to register their security interests on the PPSR using the IMC Newbury PSPR Management Portal. 

Reliance on the “transitional provisions” under the PPSA is fraught with danger:

Ferrier Hodgson – “I advise that transitional protection will generally not apply to deliveries made after commencement of the PPSA under a pre-commencement trading relationship, unless the seller was already under anobligation before commencement to supply the goods.

Supplies made after commencement under an existing trading relationship will be subject to the PPSA in the same way as supplies made under a new relationship therefore, as there was no agreed supplybetween Supplier A and WOW (i.e. a specific number of goods delivered on a monthly basis), each invoice post 30 January 2012 represents a new agreement and is not protected by transitional provisions under PPSA. 

As Supplier A has failed toregister its interest in relation to agreements entered into on or after 30 January 2012 this portion of its claim is untenable and is rejected.”

IMC Newbury supports TABMA (Timber & Building Materials Association)

The TABMA Trade Credit Insurance Program is a unique, cost-effective program developed and managed by IMC Newbury specifically for TABMA (Australia) members. 

Major Benefits of Trade Credit Insurance:

• Protect your business from bad debts
• Protect your profit / shareholder equity
• Trade with confidence and ensure peace of mind
• Improve your credit management procedures
• Access independent credit risk assessment
• Increase your sales to existing and new customers/markets
• Provdie additional security to your own suppliers and financiers

Unique features of the Program:

• 3-12 month periods of insurance - subject to terms & conditions
• Very competitive premium
• A low shared claims excess amongst all insured Members
• Exclusion of part of turnover, saving on premium costs
• All Limit Administration Charges and Discretionary Limit report costs absorbed by IMC Newbury
• and more.....

If your business is involved with the supply of timber and/or building materials, please contact IMC Newbury for more information.