The Institute for Turnaround has criticised credit insurers for withdrawing cover across the whole of troubled business sectors, without taking the situations of individual companies into account.

The insurers provide cover to companies which gives business some protection from clients not paying their invoices, but the IFT has said that the insurance is drying up.

Christine Elliott, chief executive of the IFT told the FT that a poll of members had uncovered ' blanket sector reductions in credit cover,' or 'withdrawal without regard to individual operations.

'If a sector is viewed negatively, [the insurers] may well pull sector cover and not discriminate, Elliott added.

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