Irish food and drink SMEs operate in a sector marked by tight margins, high credit risk, and frequent economic disruptions. Trade credit monitoring and supports are pivotal for businesses risk management , maintaining cash flow, and supporting growth.
Why are trade credit checks necessary?
- Ensures payment for goods and services sold on credit terms, even if a customer defaults.
- Minimises the impact of bad debts, which can be devastating for small businesses with limited reserves.
- Allows businesses to extend credit to new customers and pursue larger sales volumes without increasing their risk exposure
- Facilitates entry into new markets—especially international ones—where assessing customer creditworthiness can be challenging.
- Insured receivables are viewed more favourably by lenders, improving access to working capital and better loan terms.
- Trade credit insurers offer ongoing monitoring and risk assessment of customers, alerting businesses to potential payment issues before they escalate and supporting payment term negotiations.
There are also many forms where it is possible to check the credit ratings of existing and new customers
SoloCheck
Provides official company, director, and shareholder information, as well as credit/risk ratings, judgments, and insolvency notices. It’s widely used for background checks and due diligence on Irish companies.
CRIFVision-Net
Offers highly predictive credit scores and detailed credit reports on Irish businesses. Reports include financial data, payment history, risk factors, and a simple traffic light scoring system for at-a-glance assessment.
Creditsafe
Allows you to quickly perform company credit checks on Irish businesses and request free company credit reports. Their database is extensive and regularly updated.
Creditserve
Offers instant online credit checks for all Irish companies, including financials, judgments, credit limits, and risk scores. Reports are available on a pay-as-you-go basis or by subscription.
Irish Trade Registry
Provides business credit reports with company profiles, credit scores, financial analysis, payment behaviour, and director information. Reports are available for a fee.
GRID Finance
Offers a personalised business credit score, giving a clear picture of your company’s creditworthiness.
What Regional and Sector Approval Rates Mean for Irish Food and Drink SMEs
Irish food and drink SMEs face unique challenges when it comes to credit checking and securing trade credit insurance. The latest regional and sector-specific approval rates have direct implications for their ability to manage risk, secure coverage, and support growth in a volatile environment.
Key Regional Trends Impacting Food and Drink SMEs
- EMEA (Europe, Middle East, Africa): Approval rates have dropped to 72%, the lowest since 2020. For Irish food and drink exporters, this means insurers are more cautious, making it harder to secure high credit limits for customers in these regions. Expect stricter underwriting and more detailed credit assessments.
- Latin America: Approval rates have improved to 74%. While this is positive, volatility remains. Irish food and drink SMEs exporting to Latin America may find it slightly easier to obtain credit insurance, but should remain vigilant.
- North America: Approval rates are high at 85%, despite a minor U.S. GDP contraction. Irish food and drink exporters to the U.S. benefit from easier access to credit insurance, reflecting lower perceived risk and stronger economic fundamentals.
- APAC (Asia-Pacific): Approval rates are steady at 81%, though GDP growth is moderating. Irish SMEs trading with APAC customers can expect stable access to credit insurance, but should monitor for potential changes if economic conditions worsen.
What This Means for Irish Food and Drink SMEs
Stricter Credit Assessments:
Lower approval rates in EMEA and agribusiness mean Irish food and drink SMEs will face more detailed credit checks and possibly lower credit limits for customers in higher-risk regions or sectors.
- Heightened Risk in Agribusiness: With declining approval rates, food producers and suppliers must be prepared for tougher negotiations with insurers and may need to strengthen their own internal credit checks.
- Opportunities in North America: High approval rates in the U.S. present an opportunity for Irish food and drink exporters to secure favorable credit insurance terms, supporting expansion in that market.
- Critical Importance of Due Diligence: Insurers are more selective, so it’s essential for SMEs to conduct their own credit checks alongside insurer assessments. This helps identify risks early and supports better decision-making.
- Impact on Cash Flow and Growth: Tighter approval standards can limit the amount of credit available, affecting cash flow and the ability to take on new customers or markets. SMEs should plan accordingly and work to strengthen their credit profiles.
Practical Steps for Irish Food and Drink SMEs
- Regularly review customers’ creditworthiness, especially in agribusiness and EMEA regions.
- Work closely with your insurer or broker to understand changing risk appetites and credit limits.
- Diversify your customer base to reduce exposure to high-risk sectors or regions.
- Strengthen internal credit management processes to complement insurer checks.
- Monitor economic and sector trends to anticipate changes in credit insurance availability and pricing.
In summary:
Irish food and drink SMEs must be proactive in credit checking and risk management. With insurers more cautious—especially in agribusiness and certain regions—combining insurer expertise with robust internal due diligence is essential to safeguard cash flow and support sustainable growth.