Risky Business

April  2014

People on Hand

We are excited to announce that we have recently moved to a new premises. 

The address is Windsor 5 Ways, Suite 5, 3 Days Road, Grange.

Please pop in and say hello, if you are passing by.

  Insurance News 

How Would a Large Client Going Broke Affect Your Business?


There is insurance available that many businesses find is vital to support their cash flow just in case a debtor defaults on their credit terms or they become insolvent. It is known as Trade Credit Insurance.


However, small and medium businesses have always thought that credit insurance was complicated, time consuming, and unaffordable. Fortunately, there is available a trade credit insurance policy for small and medium sized businesses, protecting them against financial loss in the event of a customer becoming insolvent. A situation where you may never recover the money owed to you and if you do recover some, you may be waiting for a considerable amount of time.


We have access to a specialist insurer offering such a policy. It covers your business against the risk of non payment if a buyer becomes insolvent. It basically covers 90% of invoice value (less policy excess of $3,000) up to $100,000 per customer with maximum liability options of $100,000; $150,000; or $200,000. It is only for Domestic trade only within Australia and New Zealand.


It does not cover though any Protracted default, Export trade, Political risks, GST and other taxes/duties payable, Pre-credit risk, consignment stock, retention payments, Disputes; advance payments; cash on delivery business; intercompany receivables; private individuals or public buyers.


To be eligible for the cover, your turnover has to be less than AUD/NZD $5 million. All of your turnover must be covered (no exclusions of buyers), a minimum of five (5) buyers must be insured and your terms of payment cannot exceed 60 days from the date of the invoice.


The good part is that it is an up-front fixed premium policy with no monthly reporting or end of year adjustments. Also you have access to Instant decisions on customer credit checks.


Premiums do start from $4,550 plus GST and Stamp Duty which is a lot cheaper than regular Trade Credit Insurance. It is well worth considering if maintaining a good cash flow is vital to your business.


This type of insurance is often taken up by large manufacturers who cannot afford this type of interruption to their businesses. This is a risk shared with small business who probably have even more to lose if a customer does not pay their bills and then files for bankruptcy. Talk to us if you would like to learn more about these risks.


Man Writing
The Right Advice


I have never written asking for your help before, but I really need your advice. I have suspected for some time now that my wife has been cheating on me.

The usual signs  - the phone rings but if I answer, the caller hangs up. My wife has been going out with 'the girls' a lot recently although when I ask their names she always says, just some friends from work, you don't know them.' 
I try to stay awake and look out for her when she comes home, but I usually fall asleep. Anyway, I have never broached the subject with my wife. I think deep down I just did not want to know the truth, but last night she went out again and I decided to finally check on her.

Around midnight, I hid in the garage behind my golf clubs so I could get a good view of the whole street when she arrived home from a night out with 'the girls.'

When she got out of the car she was buttoning up her blouse, which was open. It was at that moment, crouching behind my golf clubs, that I noticed a hairline crack where the grip meets the graphite shaft on my 3-wood.


Is this something I can fix myself or should I take it back to the pro-shop where I bought it?  


See you next month.




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