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ABI responds to GB Group and GB Building Solutions Limited administration

GB Group Holdings Limited and GB Building Solutions Limited appoint administrators: two large construction companies go into administration in a matter of months, highlighting the need for firms to protect themselves.

Mark Shepherd, ABI Manager of General Insurance, said:

Mark Shepherd“Yesterday’s announcement that GB Group Holdings and GB Building Solutions Limited have appointed administrators follows last month’s news that Anglo Holt Construction also ceased trading. These announcements, which put in jeopardy a number of major construction schemes and projects, provide a stark reminder about the vital role trade credit insurers play in protecting businesses from the knock on effects that the unexpected insolvency of a trading partner can cause.

“Trade credit insurers provided more than £11 million of cover for goods and services supplied on credit to GB Building Solutions Limited. This means their suppliers will not lose out through no fault of their own.  Without this insurance in place, many more companies would be at risk of large financial losses, and potentially further job losses. 

“Trade credit insurance gives businesses security when extending credit to companies they are trading with and improves access to bank funding, therefore encouraging businesses to expand and supporting sustainable growth. Credit insurers also work with their customers to help them understand and manage their risk when trading with other firms.”

What is trade credit insurance?

Trade credit insurance protects businesses against commercial risks that are beyond their control and helps a business to grow by minimising the financial implications of sudden or unexpected customer insolvency. Credit insurance gives businesses the confidence to extend credit to new customers and improves access to bank funding, often at more competitive rates. Trade credit insurance is for products and services that are due within 12 months.

Trade credit insurers are able to offer their customers guidance and advice about credit risks and new markets to help businesses expand and grow.

Last updated 01/07/2016