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In credit, the season is autumn. Following a period of low activity in terms of insolvency and claims over the summer, we generally see a large spike from March to May to close out the financial year.

In 2025, those with a plan and the tools to back it up, are the ones who will come out on top.

It’s a pattern that repeats almost without exception. Our expectation is that the number of claims will increase sharply again in the coming months, particularly as we experienced record insolvencies in late 2024, and ASIC data shows the increase in insolvencies over the last three years to February 2025 has been rapid and steady.

The likelihood of your business making a claim in the next three months is higher than at any other time of the year, so what can you do to ensure your trade credit house is in order and your claim will be successful?

Here are a few tips for making the most of your resources and NCI’s suite of credit services all under one roof.

1. Know your customer! Ensure the ABN, ACN or trust details are accurate and match exactly the details of your limits. Use the NCI CoverGap report to quickly identify exceptions and un- or under-insured accounts.
2. Check your Discretionary Limit justification. If it’s out of date or doesn’t speak for the amount of credit you are extending, update your reports or recommendations from NCI Credit Services.
3. Review your overdue debts and report any breaches of the maximum extension period via NCILink to your insurer, per the duty of disclosure in your policy.
4. Act on overdue debts, including referral to collection agents, to meet your credit management requirements and demonstrate you have taken “all reasonable steps to minimise a loss” in line with your policy. Insurers will reimburse costs incurred for a debt promptly referred to NCI Commercial Collections.

Not knowing the correct legal entity, lack of Discretionary Limit justification, failure to report an overdue account and continuing to trade are among the top reasons claims are reduced or denied, so please treat these “tips” as important advice.

This is a critical time for credit managers and the busiest season in the credit calendar. Your Client Service Manager and the whole team at NCI are here to help so let us know what we can do to assist and contact us right away if you have any questions.