People are already grumbling about a bad holiday season for many retailers. Possible the worst holiday season in recent history. That begs the question - are there going to be any retailer bankruptcies?
Possibly. The bigger question is "who will go Bankrupt?" I have some inklings but none that I would post in a public forum.
This is why credit insurance is very important! Credit insurance should protect you against the default of a client - especially if they go bankrupt.
If you use purchase order financing, you may want to discuss adding credit insurance to your transaction. Likewise, if you are using invoice factoring make sure you are working with a good non recourse invoice factoring company or consider getting credit insurance yourself.
By the way, I hope I am wrong. I truly hope that none of the large retailers goes bust due to this bad sales season. The economy and most people certainly don't need more bad news.
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Looking for information on purchase order financing? Read the purchase order finance blog
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