Atradius, one of the leading trade credit insurance firms, is to increase cover to UK companies, bringing relief to hard-pressed businesses.
Many suppliers and retailers have been hit by the reduction or withdrawal of trade credit insurance during the recession.
Fashion and footwear companies are among those set to benefit from the new stance, which Atradius said is likely to “facilitate” more than £1bn of extra trade in the coming months.
The trade insurer, which has a 31% global market share, said that the provision of greater cover followed “improvements in the sourcing of up-to-date financials enabling [the identification of] those companies which are performing well within their sector despite the economic downturn and continued slump in bank lending”.
Atradius said it would contact customers alerting them to the change of stance, including some whose previous applications for cover were unsuccessful.
Atradius UK and Ireland director Shaun Purrington said: “For some time we have stated that cover would increase if we could see improvements in the sharing of information by businesses.
“We are delighted to have seen a significant shift in business practices to this effect.”