The Impact of ISG’s Collapse on UK Businesses: How Trade Credit Insurance Could Have Mitigated the Fallout

The recent collapse of the International Steel Group (ISG) has highlighted significant risks in the UK business landscape. From unpaid invoices to supply chain disruptions, the fallout has been severe. This situation underscores the value of Trade Credit Insurance (TCI) – a crucial risk management tool that could have protected businesses from financial distress.

Verlingue, a leading specialist Trade Credit Insurance broker, specialises in helping UK businesses secure tailored TCI policies from specialist trade credit insurers, ensuring they are equipped to handle the challenges posed by such catastrophes

The Domino Effect of ISG’s Collapse

ISG’s failure has left many UK businesses grappling with:

1. Unpaid Debts: Companies owed significant sums by ISG are now facing cash flow shortages, jeopardising their stability.
2. Supply Chain Disruptions: Businesses dependent on ISG must now find alternative suppliers, often at higher costs and with delays.
3. Economic Fallout: Smaller firms, without the resources to absorb these losses, face the risk of insolvency.

Verlingue: Guiding Businesses to the Right Insurance Solutions

As a specialist Trade Credit Insurance broker, Verlingue provides structured insurance solutions with leading credit insurers, arranging comprehensive and tailored Trade Credit Insurance policies. This service ensures businesses receive the coverage that best meets their unique needs and in many instances the intelligence to navigate bad debt losses all together.

How Could Trade Credit Insurance Have Helped?

1. Cash Flow Protection
   With a policy arranged through Verlingue, businesses affected by ISG’s collapse, or bad debt losses from the ISG sub-contractor supply chain, could have claimed compensation for unpaid invoices, maintaining their cash flow and operational stability.
2. Pro-active Risk Monitoring
   Verlingue’s expertise extends beyond securing policies. We offer clients access to risk analysis and ongoing monitoring tools, enabling them to stay informed about the financial health of their customers and take proactive action when warning signs emerge.
3. Confidence to Grow
   Verlingue’s support provides businesses with the assurance they need to trade confidently, even in volatile markets, knowing they are protected against the risk of customer non-payment.

Why Businesses Need a Broker Like Verlingue

The collapse of ISG highlights the unpredictability of today’s business environment. For companies that rely on large customers or operate in complex supply chains, the risk of non-payment can be catastrophic. This is where Verlingue’s role as a broker becomes invaluable.

By working with Verlingue’s specialist trade credit team, businesses gain access to:

1. The entire specialist credit insurance market.
2. Expertise in negotiating structured solutions and policies that address trade credit risks and exposure.
3. Ongoing support and advice, ensuring coverage evolves with the demands and needs of businesses thus tailoring solutions that are fit for purpose.

Building Resilience Together

At Verlingue, we are committed to helping businesses safeguard their financial health and navigate uncertainty with confidence. Our role as a broker is to ensure that you have access to the best Trade Credit Insurance options available, empowering you to focus on growth while being Protected for the unexpected.