( Cardiff Jan 26^th 2010)

 

Leading trade credit insurer Atradius warns that signs a recession is over should be treated with caution and that insolvencies have not yet have peaked.

 

Marc Henstridge, Head of Risk for the UK and Ireland at Atradius, says,

“Realistically, 0.1% economic growth is a relatively minor return on the combined factors of Government stimulus schemes, banking support, stretched credit terms, upturns in some sectors such as construction and improved Christmas retail results. The tough times are not yet over. Although we are seeing some positive key indicators, history shows that when the UK emerges from recession, we can expect significant insolvencies for at least 6 -12 months. We have already alerted our customers to where those insolvencies may arise. They are in the fortunate position of full visibility of non-payment risk during a very difficult period in which to extend credit terms.”

 

Pete Davies Commercial Manager of Atradius UK, adds,

“Opportunities for business are thankfully on the increase, but no-one can afford to be complacent. Now, more than ever, businesses need to know their trading partners inside out and to effectively assess their trade credit risks. As loan and deferred tax repayments become due, the stress on many businesses is set to increase. An open exchange of financial information on both sides should be part and parcel of any business deal.”

 

 

ENDS

 

Notes to editors

 

About Atradius:

Atradius provides trade credit insurance, surety and collections services worldwide, and has a presence in 40 countries. Its products and services aim to reduce its customers’ exposure to buyers who fail to pay for the products and services customers purchase. With a 31% share of the global trade credit insurance market, its products contribute to the growth of companies throughout the world by protecting them from payment risks associated with selling products and services on credit. With over 150 offices, it has access to credit information on 52 million companies worldwide and makes more than 22,000 trade credit limit decisions daily. For information about Atradius products and services visit www.atradius.co.uk

 

Further information: 

Atradius Corporate Communications 

Jo Aaron

Tel: 02920 824873 / 07768 233338

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it