Printers cause suppliers bad debt pain

The number of credit insurance claims in the printing industry continues to rise around Australia and New Zealand.

According to National Credit Insurance Brokers (NCIB) claims statistics, during 2009 the paper and printing industry made over $8.8m in credit insurance claims. This ranks paper and printing in the top five claiming industries of 2009 behind building/hardware, electrical wholesale, advertising/media and engineering.
 
Paper suppliers who use trade credit insurance as a means of protecting themselves against the risk of a bad debt, lodged over 100 credit insurance claims via NCI in 2009.
 
According to Kirk Cheesman, (pictured) managing director of Australia and New Zealand’s trade credit insurance broker, NCIB believes that “The paper and printing industry is trading in a tough environment,” he said.

“Suppliers have increasingly been seeking support in assessing their Trade Debtor Risks by using Trade Credit Insurance, out sourcing debtor assessment and monitoring services and requesting further data including financial statements from their debtors.”
 
Cheesman added that the paper and printing concerns are not just limited to Australia, but also New Zealand and the Asia region.  

Last year, Cheeseman told Print21 that it was growing harder for companies to gain insurance. "Insurers have been hit hard with credit insurance claims and their hunger for trade credit insurance in the printing industry has decreased," he said.