Trade credit insurer Atradius is keen to throw UK firms a credit lifeline by insisting it will continue to increase exposure this year.
The statement comes despite today’s ONS figures revealing a 0.5 per cent contraction in the UK economy.
Marc Henstridge, head of risk at Atradius UK and Ireland, said: “Despite growth forecasts of 0.2-0.6 per cent for the end of 2010, we are seeing economic contraction, and the UK has not yet felt the full impact of other economic stresses such as the austerity measures or the surge in commodities prices. The UK economy remains extremely vulnerable.”
Last year, the firm increased exposure by 30 per cent and revealed it is planning more of the same this year.
Henstridge added: “We were founded in 1918 to support British businesses and enable them to take risks with our support – today our role is no different. We do two things. Firstly, we advise our policyholders with whom it is safe for them to trade and secondly, we pay out on claims if businesses we have identified as 'safe' are then unable to pay them.
“This means that businesses have the reassurance that they are going to get paid, either way. This is key in the light of the UK’s economic recovery – we can offer some certainty, even in an economic situation where there is very little.”
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