Understand the Process of Bankruptcy and Its Unique Challenges

October 2020

Understand the Process of Bankruptcy and its Unique Challenges

The rise in insolvencies and bankruptcies worldwide are adding major pressure to supply chains-potentially disrupting and forcing businesses to urgently find (costly) alternatives, putting suppliers at financial risk with nonpayment and resulting in large and expensive legal bankruptcy procedures. 

The bigger the company filing for bankruptcy, the higher the risk of a domino effect that could push businesses already grasping to stay solvent further underwater. In conjunction with the COVID-19 pandemic and its sudden impact of historic proportions, the business insolvency outlook through the first half of 2021 looks concerning. 

"If businesses can’t grow and trade on a global scale, that only exacerbates the slowdown we are seeing in the world economy. In just a few months, we have seen business leaders restrict credit terms and slash expansion plans. This is why it is so important to consider risk mitigation strategies like trade credit insurance, which allows for growth even in times of crisis." 

       — James Daly, President and CEO, Allianz Trade Americas
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