Is a withdrawal of credit insurance cover construction’s ‘canary in the coalmine’?

By Julie Palmer 2026-08-21T06:00:00

The withdrawal of trade credit cover has historically preceded high-profile corporate collapses - and now construction’s SME supply chains are at risk, warns Julie Palmer of BTG

Across the years we have seen the pulling of trade credit cover mark the beginning of sharp downward spirals. Woolworths, Debenhams and Maplin are all examples of high-profile retail collapses that spiralled after cover was withdrawn. The cash that was left went on trying to pay suppliers and creditors.

The ripple effect of business distress at a large company is often discussed. However, rarely is it demonstrated so publicly that suppliers reliant on that company for most, if not all, of their revenue feel the stress rise.

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