Leading credit insurer warns against unexpected insolvencies

(Cardiff, Sept 9th 2010)

Leading trade credit insurer Atradius warns businesses not to be complacent in the wake of another high profile insolvency hitting the UK. Construction giant Connaught, valued just months ago at £500m, has this week entered administration leaving thousands of creditors out of pocket and wondering if and how they are going to be paid for goods and services they have already provided.  

Marc Henstridge, Head of Risk, Atradius UK and Ireland said:

“After an economically tough couple of years, it’s tempting for businesses to look at the improving insolvency statistics and presume that we are out of the woods – but the demise of Connaught is a classic cautionary tale. But this could be the tip of the iceberg – public spending cuts and other austerity measures mean businesses must continue to be meticulous in their management of trade credit risks, either in-house or by outsourcing their credit management to a trade credit insurer. There are still many potential surprises – and not all of them will be pleasant ones”     

In a recent study by Atradius, 57% of British businesses surveyed said that they were experiencing unarranged delays to payment by companies they were supplying and 59% had been asked for extended payment terms in the past 6 months.
 

ENDS

About Atradius:  

The Atradius Group provides trade credit insurance, surety and collections services worldwide, and has a presence through 160 offices in 42 countries. Atradius has access to credit information on 52 million companies worldwide and makes more than 22,000 trade credit limit decisions daily. Its products and services aim to reduce its customers’ exposure to buyers who fail to pay for the products and services they buy. With total income of more than EUR 1.7 billion and a 31% share of the global trade credit insurance market, its products help protect companies throughout the world from payment risks associated with selling products and services on credit.
 

Further information:
Jo Aaron
Atradius Corporate Communications, UK & Ireland  

Tel: 02920 824873 / 07768 233338           E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it