Carillion Suppliers Provided Some Respite as Insurers Pay Up!

25th January 2018.

Suppliers of the collapsed construction giant, Carillion, are finally seeing some relief as insurers are finally handing over the cash. Insurers have said they will pay more than £30 million to businesses owed money by collapsed construction giant, Carillion. However, this is not good news for everyone, as only a minority of firms had the cover. At the Credit Protection Association, we are consistently encouraging our Members to prepare for all eventualities in business, whether its insolvencies, skill gaps or pileups of bad debt.While the failure to do keep us in a steady flow of business, we would much rather our business owners keep their cash flow in good shape. Whether it’s insuring your business against bad debt, or taking the right steps to avoid shady characters; businesses should prepare themselves for the worst.

Mark Shepherd at the Association of British Insurers has reported that sums ranging from £5,000 to several million pounds are being paid to firms which had insurance policies against bad debts.

Most of Carillion’s suppliers risk getting little or nothing back, as only a minority of firms had the cover.

Carillion went under last week with £1.5bn debt, leaving its 30,000 suppliers facing an uncertain future.

Small businesses are owed £141,000 on average by Carillion, according to a survey of building, engineering and electrical firms by industry bodies.

Medium sized ones with 50 to 250 employees are owed typically £236,000, while larger firms face an average shortfall of over £15m.

Labour is increasing pressure on the government to publish the risk assessments it did into Carillion before its collapse.

Preparing for the worst is inevitable and vital for any business. While you may want to maintain a cheerful and positive outlook all the time, this may harm your business in the long run. It will not hurt your business to prepare contingencies in the event of another crisis like Carillion. We are all in this together; small firms, suppliers and blue-chips. If one chink in the supply chain breaks, we all collapse. Here at the Credit Protection Association, we boast a range of credit management products to keep businesses out of the grasp of bad payers. We have credit reports, credit ratings and director directories that can deter bad business, while our debt recovery services will combat it. Please get in contact with our team with the details below!