We’re all familiar with the concept of a ‘spring clean’ and the change of seasons being a reminder to get our houses in order.
In credit, the season is autumn. Following a period of low activity in terms of insolvency and claims over the summer, we generally see a large spike from March to May to close out the financial year.
In 2025, those with a plan and the tools to back it up, are the ones who will come out on top.
It’s a pattern that repeats almost without exception. Our expectation is that the number of claims will increase sharply again in the coming months, particularly as we experienced record insolvencies in late 2024, and ASIC data shows the increase in insolvencies over the last three years to February 2025 has been rapid and steady.
The likelihood of businesses making a claim in the next three months is higher than at any other time of the year, so what can you do to ensure your trade credit house is in order?
Here are a few tips for making the most of NCI’s suite of credit services:
- Know your customer! Ensure the ABN, ACN or trust details are accurate and match exactly the details of your credit limits. NCI’s CoverGap report can quickly identify underinsured accounts.
- Check your Credit Limit justification. If it’s out of date or doesn’t speak for the amount of credit you are extending, update your reports or recommendations from NCI Credit Services.
- Review your PPSR registrations and ensure they are correct and up to date. NCI can perform a wash on your current registrations to ensure the details are correct.
- Review and act on overdue debts, including referral to escalation to a third party like NCI Commercial Collections.
This is a critical time for credit managers and the busiest season in the credit calendar. The whole team at NCI are here to help so let us know what we can do to assist and contact us right away if you have any questions.
About NCI
As Australia’s leading trade credit insurance broker, NCI is uniquely placed to report on the ‘ups and downs’ of the country’s inter-business trading climate. With frequent media reports on the fluctuations of business trade credit factors, NCI’s is ideally placed to demonstrate the extremes of Australia’s economy
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