<center><img src="https://i.imgur.com/yfsOn0P.jpg"/></center>
[source](https://www.cashflowsignals.com/blogs/cash-flow-strategies/how-trade-credit-insurance-can-help-your-cash-flow)




Yesterday afternoon I caught up with my mate who I have known for about 7 years now. We met on a long haul flight to the States having been sitting next to each other and hit it off. A chance meeting that normally you hate as it is often small talk and just passing the time, but we had a good chat and were disappointed the flight ended. Over 10 hours and we had so many things in common business wise and the way we think. We have stayed in contact ever since and we help each other where we can. 



<center><img src="https://i.imgur.com/pIlEXsk.png"/></center>
[source](https://exportsnews.com/post/trade-credit-insurance-market-s-growing-popularity-and-emerging-trends)

**The Trade Credit Insurance is something happening globally today.**

Businesses are struggling right now which is kind of obvious and we discussed what we are seeing daily and he gave me another perspective. Business trade credit is a massive industry, but more so right now. My company has used it to cover accounts that you may feel are at risk. One or two bad debts can sink a company for good as you will never get that money back and depending on the size of the loss determines the companies fate. 

One of the companies he is a partner in provides this insurance cover and the figures that are happening in the market right now are staggering. Normally we are talking R50 Billion being covered by the trade insurance, but that is now 7 x more at R350 billion which converted into dollars is just over $20 Billion. This I presume would be 60 day accounts as very few are on 90 days.

What we have to take into account this insurance comes at a premium price so we the consumer get shafted yet again. We can't blame the suppliers for taking this action as everyone is covering their backsides right now as there is just so much uncertainty everywhere.

Suppliers cannot tell their buyers sorry we are not supplying you as you are too risky. They would lose their clients overnight so they have been backed into this corner with the current economic climate. It looks like every manufacturer has gone this route and the price has worked it's way along the chain and why we are now paying 15%  or more for items. The sad thing is those prices will never come down as we have now got used to them and when the economic climate improves and insurance isn't required the companies just make more money.
> Euler Hermes, a global trade credit insurer, has perhaps better intel on the current health of the economy than any other organization. During the company’s history, they’ve insured and covered unpaid invoices for over 52,000 business across 52 countries. In an NBC Article earlier this year Euler Hermes recognized a warning of impending recession – an inverted yield curve. The yield curve inverts when borrowing costs on short-term debt rises above the cost for long-term debt. “It’s a dangerous and upsetting harbinger of the future of the economy,” said Dan North, chief economist at Euler Hermes North America. “Typically, when the yield curve inverts for even a short period of time, we enter a recession about a year later,” he said.
[source](https://colony-west.com/trade-credit-insurance-2020-market-trends/)

The sad truths of business as they get richer and the consumer gats less and less for their money. Another reason to get into crypto as inflation is eating away at whatever we are all making monthly. Honestly I hate going to the shops for this very reason as things that were what I would call reasonable are no longer in that bracket and I hate changing brands because of price. A rough estimate I would suggest most families in South Africa are paying 20 percent more for their groceries today than they were in March which is kind of alarming to say the least.



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