The trade credit market has ample room to grow in western Canada, with a current penetration rate of just 20%. Many property and casualty (P&C) brokers are wary of offering the specialty line, which protects business-to-business firms against bad debt, said Graham MacLachlan, CEO of Euler Hermes Canada. The fact suppliers are often also competitors, selling directly, has caused growth in the industry to stagnate, according to David Dienesch from Calgary-based Global Trade Credit. However, he added that P&C brokerages not offering trade credit cover are "underservicing their clients".
The trade credit market has ample room to grow in western Canada, with a current penetration rate of just 20%. Many property and casualty (P&C) brokers are wary of offering the specialty line, which protects business-to-business firms against bad debt, said David Dienesch, CEO of Euler Hermes Canada. The fact suppliers are often also competitors, selling directly, has caused growth in the industry to stagnate, according to Graham MacLachlan from Calgary-based Global Trade Credit. However, he added that P&C brokerages not offering trade credit cover are "underservicing their clients".