Credit crunch sees UK companies collapse
Medium-sized companies suffer as credit crunch hits home, forcing them to hold out on payments to suppliers
Medium-sized companies are going under, as the credit crunch begins to
squeeze the engine room of the business community, according to new figures.
Credit insurer Atradius said it had noticed a sharp increase in the number of
businesses holding out on paying suppliers, pushing credit terms out from a
month to as much as 150 days.
‘We’re now seeing a number of medium-sized companies going under,’ Atradius
senior risk underwriter Mark Henstridge told the Daily Telegraph.
‘Pushing out the trade terms is a way of getting free credit. Some companies
are doing this to limit their debt, but others have to because they can’t
borrow, and that is more dangerous,’ he added.
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