Red Alert: Time to Check The Financial Strength of Your Customers & Contractors!
Red Alert: Time to Check The Financial Strength of Your Customers & Contractors!
This advice was given recently by Kirk Cheesman, Managing Director of NCI, Australia’s leading trade credit insurance broker.
It backs up the analysis by legendary economist, Stephen Koukoulas when analysing the June 2023 Quarter NCI Trade Credit Risk Index.
It reflects the worst business conditions since the September quarter of Covid 2020 – and almost certainly to get worse when the lag conditions of high interest, poor & failing consumer confidence and the ending of various business support packages really start to kick in. Various media and newspaper articles Australia Wide indicate this so.
And the June 2023 Quarter NCI Index reflects failures and insurance claims emanating for the combined building and manufacturing industries as greater than all other industries combined and as of today all 10 NPM Companies (National Projects) have entered voluntary liquidation.
These were the words of advice offered in the 1991 recession & the 2008 Global Financial Crisis; they rang true then, and now; indeed, probably at any time.
It’s foundered upon logic and data driven history. Let’s apply that to our specific niche of project building & construction.
Firstly, it is enormously expensive & time consuming to replace contractor’s mid project. Suggestions range from a further 30% to 100% in cost extras.
Secondly, the least experienced and under-financed contractors are the first to go broke and/or fail to complete. It’s always the way, because they may have misquoted just to get the job and don’t have the financial backing to withstand tough times. But they never let on, until they cannot hang on and that’s when the S hits the fan!
Thirdly, the thrill of a low price erodes very fast when faced with a half-completed job with no one willing to step in quickly to complete at anywhere near the original price. And that appears to be the reality of today. Its LOSE-LOSE!
The solution in tough times, though we would argue ‘all times’, is contained in the following checklist:
· Rely only on contractors with a record of over 10 years of consistent, continuous & successful project completion, as independently verified by third party testimonials.
· Check the stability of their central management or ‘decision wheelhouse’
· Check their credit references.
· Check their supplies of materials or ability to quickly obtain.
· If you have credit insurance, check with your provider.
Action Step: Why not run all your current contractors through this checklist now
Should you decide to put Flight Stairways to this rigorous checklist, this is what you will find.
· Continuously In Business Since 1985 – 38 Successful Years
· Approaching 80,000 Staircase Manufactures
· Privately Owned & Operated By The Sutton Family Since 1985
· Over 100 Independent Testimonials (happy to provide)
· Unblemished Credit Record & We Hold Credit Insurance
· Always Retain Significant Stock Holdings At All Times
Put simply, you can rely 100% on Flight Stairways starting, and successfully completing your project requirements – just as we have done 80,000 times in the past 38 years!
Ask me about our 7 Guarantees Which No Other Staircase Company Dares To Offer....
