A steel wire manufacturing company that manufactures furniture and bedding products soon became a company of interest for our risk monitoring team. As a supplier of a few customers of Allianz Trade, we kept a close eye on its financial health to ensure our customers were protected from an untimely and unwanted non-payment event.
Starting in 2020, the Allianz Trade risk monitoring team noticed significant decreases in net worth, suggesting potential losses.
The company refused to provide financial disclosure information or supply any explanation for the decreases in net worth—until it was too late, and it was already violating bank agreements.
