The Independent Media Agencies of Australia (IMAA) has announced that its trade credit insurance group deal for IMAA members is now live, with 25 member agencies signing up.
Trade credit insurance protects agencies from bad debts including unpaid invoices caused by client bankruptcy and receivership, default, political risks, and other reasons. The policy is usually commensurate with the value of advertising spend and the payment terms agreed with each client. Although rarely used, it is one of the highest costs for indie media agencies.
The group deal, successfully brokered by the IMAA, will see its members save up to 75% in some cases with a major Australian owned insurance group.
IMAA general manager, Sam Buchanan, said: “This is a major win for the independent media agency sector to help substantially reduce one of an agency’s biggest costs. We have brought to fruition a world first trade credit insurance group agreement with an Australian owned insurance company and our members have jumped at the opportunity, especially with ongoing snap lockdowns playing havoc with indie agencies’ operating costs. Reducing this cost will ensure that the independent media agency sector remains a vibrant and vital part of Australia’s economy now and into the future.
“We are looking at a number of other group deal arrangements for our members, which will be announced shortly.”
IMAA chairman and Sandbox Media director Ant Colreavy said: “Many independent agencies were impacted during the COVID-19 pandemic, which saw some trade credit insurers effectively penalise Australian-owned businesses as they ‘de-risked’ themselves. Limiting the amount of trade credit meant that agencies were left with no other option than to ask their clients for cash upfront or carry the exposure themselves. This new group deal is a massive win for IMAA members and one which will make us all sleep better at night.”
Mediaweek has been profiling members of the IMAA – previous features can be found here.