Credit insurers slammed for pulling supplier cover
Insurance which guards against clients not paying suppliers is becoming tougher to come by as providers withdraw cover, says IFT
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.