25-30 Percent Increase Expected in Average Company Insolvencies in the World

25-30 Percent Increase Expected in Average Company Insolvencies in the World
25-30 Percent Increase Expected in Average Company Insolvencies in the World

Based on the fact that 80 percent of companies worldwide face unpaid receivables EGİADorganized the "International Credit Risk Management" webinar in order to present a road map for its members to secure their trade receivables.


EGİADIfm creates significant differences between international financial institutions and create added value in the playoff 4.kez chosen 'Best Receivable Insurance Company in Turkey' brought together with selected members of Coface Turkey. The webinar, where Coface Insurance General Manager Ali Gençtürk was a guest speaker, discussed the varying risks in each country and the scope of trade receivable insurance.

4.3 Percent Shrinkage in World Trade Volume

Making the opening speech of the meeting EGİAD Chairman of the Board of Directors, Mustafa Aslan, stated that Credit Insurance supports the cash flow of companies by securing both domestic and export receivables. The Lion, the coronavirus outbreak that reached the peak again and the devastation caused tens of thousands of SMEs in Turkey, recalling that the economy is deeply affected, "This challenging process to remove roadmap for SMEs is very important in the business world. The impact to that of the global supply-demand balance with paralyzed by the outbreak, as in the world and in Turkey in the tens of thousands of the company's business model will lead to revolutionary change. In order to overcome this process with the least damage, it is of great importance to ensure the cash flow, especially to guarantee the health of the employees, and to make the most of loans and supports. An increase in average company insolvencies around the world is expected. Especially in emerging economies with pandemic shock, it can be experienced even harder. Considering the forecast of 2020 percent contraction in world trade volume in 4.3, it is essential to develop serious strategies. Noting that it is very important for a company to take steps regarding its receivables in terms of risk management in this direction, Aslan said, “Receivables are actually a factor that has a direct impact on the healthy cash flow. When we take the balance sheet, we see many different classifications regarding receivables. The main focus of the classification is the risk of delay in payments and non-payment of invoices. Trade receivable insurance protects companies against unpaid invoices both domestically and abroad. Trade credit insurance offer is available to companies of all sizes, from SMEs to multinational companies. I especially recommend that our members who have not met this service before, should examine it carefully. I think we are at the right time to take steps such as restructuring, creating departments such as finance and human resources, and providing a real corporate management, using secure trading tools such as trade receivables insurance, paying more attention to stock and cost management, and existing in the digital environment. 'he spoke.

Coface Insurance General Manager Ali Gençtürk started his speech by stating that a period in which safe trade and risk concepts gained more importance, especially in the global sense. As a company managing trade receivables risk, he noted that the service provided to Turkish companies regarding both export and domestic receivables is a solution provider.

4 billion Euros Assurance to Turkish Buyers as Coface

As Coface directly or through partners, they were still maintains a presence in 100 countries and in more than 200 countries stressed the right of support for customers Gençtürk, Turkey in premium production, taking 11th place was emphasized that a good point. Emphasizing that as Coface they gave 4 billion Euros to Turkish buyers, Gençtürk pointed out that a great financial support was realized.

Turkey was the manager of the Covidien Good Process

Covidien early in the process of Turkey's measures and support a good process to manage according to Coface stated that European Insurance General Manager Ali Gençtürk, 2021 also stressed the need to continue to support similar absolute. Paying attention to the importance of Turkish exporters getting support, Gençtürk invited the company management to be cautious.

High Bankruptcy Rates in American Companies

indicating Covidien process in the 2nd wave within the scenario will be to enter the Asia Pacific countries to a quicker recovery Coface Turkey General Manager Ali Gençtürk, given the worldwide recording is that some companies this transition well yöneteme by bankruptcy to come, "2021, this increased bankruptcies percent of 25- It will watch 30 percent. When we look at the weekly bankruptcy rates, America is going at a high rate. "There are serious deteriorations in England, Portugal and Italy."

Small Company Risk, Uncollectible Receivables

Coface Turkey General Manager Ali Gençtürk, the Pandemic process, especially uncollected biggest risk all over the world for small companies stressed that the receivables. Expressing that maturity extensions and the subsequent increase in bankruptcy rates make commercial receivables insurance more indispensable for companies to protect their receivables, Gençtürk said, “Demanding to work in advance carries the risk of losing the buyer more than ever before, both in the domestic market and in exports.

Noting that the credit risks of companies will increase even in the best scenario of Coface all over the world, Gençtürk said, “Especially the pandemic shock can be experienced even harder in emerging economies. Considering the forecast of 2020 percent contraction in the world trade volume in 4.3, I would like to point out that another issue to be noted is the single buyer dependency. The most important strategy change for these companies should be to increase the number of safe buyers by foreseeing possible supply chain interruptions.

You must make the right and fast decision

Gençtürk continued his words as follows: “We recommend that SMEs improve their ability to make correct and fast decisions by taking the developments all over the world into consideration. Another important point is that the company structure is compatible with the technological transformation in today's world and has met its requirements. We can say that we are at the right time to take steps such as restructuring, creating departments such as finance and human resources and providing a real corporate management, using secure trading tools such as trade receivables insurance, paying more attention to stock and cost management, and existing in the digital environment. . ”



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