Could boost £1bn of extra trade, said Atradius
A trade credit insurer has increased its credit insurance capacity on 13,000 UK companies.
Atradius said the move followed a comprehensive review of its risk underwriting strategy. It estimated that over £1bn of extra trade could be facilitated in the coming months.
The insurer said there was a particular improvement for companies who operate in the construction and engineering sectors although other sectors would also benefit.
“The increase in capacity has come about following improvements in the sourcing of up-to-date financials enabling Atradius to identify those companies which are performing well within their trade sector despite the economic downturn and continued slump in bank lending,” said the firm in a statement.
Atradius said it plans to contact all customers and alert them to credit risks where increased capacity will be of specific interest to them, for example, where previous applications were unsuccessful.
Shaun Purrington, Director, Atradius UK and Ireland, said, "For some time we have stated that cover would increase if we could to see improvements in the sharing of information by businesses. We are delighted to have seen a significant shift in business practices to this effect. This will be a welcome boost for our customers as they grapple with credit risks in an uncertain environment."