QBE told customers on the weekend that it would no longer provide trade credit insurance for businesses with a limit of less than $410,000. That meant suppliers selling products on credit worth up to $410,000 would not be insured in the event that some customers failed to make the payment.
Builders were then advised that they no longer have credit terms, leaving builders scratching their heads as to how to fulfil construction contracts without being able to access credit terms.
Subsequently, QBE has decided to reinstate approximately 7000 of the 9000 blacklisted companies for half their original limit.
This will most likely impact customers’ overdraft limits and financial arrangements with banks, due to the increased exposure for these companies and, subsequently, the banks’.
Harry Pontikis from Master Builders Financial Services again implores members to get their finances in order while they still can, urgently investigating the options of:
- Consolidating personal and business loans and debts to free up cash flow
- Organising funding lines of credit and overdrafts
- Accessing equity in their properties
- Ensuring they are paying the lowest rates available for their home and business loans
The team at Financial Services can provide advice and help members by organising finance and lending options and alternatives now.
Contact the team at 1300 137 539 or email Harry Pontikis directly on email@example.com
Chocolate Money trades as Master Builders Financial Services and holds an Australian Credit License – 387277
This article is general in nature and not to be considered specific advice. For tailored advice, contact the team at MBFS on 1300 137 539