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Has anyone else had problems uping their credit limit with Qualtex?
We are currently at £1000, which isn’t enough. We spend 3 times that a month with CDS. When we asked they refused, so now we have to spread the order out between our other suppliers.
Does seem strange tho, when we want to give them more business they don’t appear to want it. Is this the current climate?
Anyways back to giving CDS even MORE money
Re: Qualtex credit limits
Hi Scots
Yes, a few weeks ago we needed ours raising (with qualtex midlands ),only to be told thats as far as it can go.
I suppose on the face of it,it is the banks who are tightening the screws here.
Re: Qualtex credit limits
Surley like the banks, if you have a great track record, they’d be falling over themselves..
Just my thoughts, but like I said Qualtex loss is CDS gain
Re: Qualtex credit limits
Sorry,just realised who you refer to as cds.
It should be cdsl not cds,as cds were the company before qualtex midlands.
Re: Qualtex credit limits
What seems to be happening is the credit insurers are withdrawing cover,so the risk then all falls on the supplier.
Pretty shitty thing for the insurance companys to do,as the whole point of insurance is pooled risk i thought :rolls:Re: Qualtex credit limits
presser wrote:What seems to be happening is the credit insurers are withdrawing cover,so the risk then all falls on the supplier.
Correct but, for small accounts that has been a risk often taken by the suppliers anyway.
But, in the current climate the risks are perceived as being higher on any account.
presser wrote:Pretty s**tty thing for the insurance companys to do,as the whole point of insurance is pooled risk i thought :rolls:
Not really.
Insurers assess the risk and then effectively gamble on coming out on the right side of it all, i.e. they don’t lose but profit from insuring the risk/s overall. What they won’t do is insure a risk that seems too dodgy just in the same way as they won’t insure a 17 year old to drive a Ferarri, same thing only different.
What has happened is that they see the risk/s as being too great to offer a price on or one that would be acceptable to the supplier looking to insure the debts, just like the 17 year old with the Ferarri.
Right now it is primarily retail businesses that face an uphill struggle as credit is revoked or reduced in light of this since the level of risk has increased in the eyes of the insurers. It has nothing to do with pooling the risk really, it’s the fact that the risk is just too great and you’d be amazed at some of the businesses out there that can’t get credit right now, at all.
Unlike the banks, insurers seem to be a little more prudent. 😉
But in all honesty getting or increasing credit limits right now with almost anyone, globally, is nigh on impossible and if you get credit at all I’d say that you were probably doing well since many are having to trade cash with order, cash up front or even credit on account with suppliers.
Suppliers on the other hand will often not supply product on credit unless they can insure against the risk of you going bust. For spares they’ll take a punt on a few hundred quid, maybe even a couple of grand but start drifting beyond that and you’re on the radar as a potentially harmful account if you go pop.
With reports of businesses going pop all over the place is it any wonder that neither they nor the insurers want to take the risk?
But I will offer some advice, accounts that are as good as gold, pay regularly and don’t mess suppliers around will get a LOT more latitude with suppliers than those accounts that pay late, give weak excuses and so on and so forth and, if your payment pattern changes for the worse to any degree that’s a big red flag in the current climate. Mess about and you’re liable to lose any credit you have or have it reduced.
Do the old moving from one supplier to another every month so you don’t have to pay one or the other is also liable to lose you credit at the moment.
I’m just letting you know, there’s a lot of people out there that are very, very nervous and I have to say with just cause this time and all this applies to any supplier, spares or appliances.
K.
Re: Qualtex credit limits
Credit limit belt tightening is not just confined to the white goods industry. The motor trade is affected to a greater degree and no mistake. A friend of mine runs a Vauxhall dealership and his local suppliers have no limit on their monthly supplies to him but Vauxhall have cut his monthly credit limit in half since last September.
I have no idea how much money is involved here but if Vauxhall can’t give their dealers much of a deal on monthly credit then it gives us all an insight into what’s happening out there today!
Pretty soon it’ll be a ‘cash up front or on yer bike’ trading terms for us all I shouldn’t wonder. 🙁
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