Quadnet slams Atradius withdrawal

VAR accuses credit insurer of not allowing it to present its business case

Aleem: Atradius is using its corporate might to do as it pleases

VAR Quadnet has hit out at Atradius, claiming the credit insurer has snubbed its attempts to kindle a meaningful dialogue after pulling its cover.

In late June, Atradius informed distributors that it was no longer willing to underwrite credit into the HP, VMware and Microsoft partner, which has a turnover of £7m.

Quadnet claims the move has put it in a “serious position”, forcing it to trade at reduced levels and lay off at least three staff.

Rival credit insurer Euler Hermes withdrew Quadnet’s cover in April, but quickly re-instated it at 70 per cent of the original level following a meeting to discuss its finances.

Zubair Aleem, managing director of Quadnet, said Atradius has refused to hear its business case. He claimed the VAR had a solid payment record, sound customer references and a strong public sector pipeline.

Aleem said Atradius only agreed to a meeting after he stressed in a phone conversation that Quadnet would owe Atradius clients £250,000 if it went out of business.

“But we had no feedback that made sense,” he said.

“Atradius cornered the market and is using its corporate might to do as it pleases. We have lost £20,000 profit in 30 days because we have had to turn business away.”

However, Marc Henstridge, head of risk for the UK and Ireland at Atradius, claimed he had given Quadnet more access to his team than any other reseller.

“Zubair has had numerous discussions with our underwriters,” he said. “We just have a different view of his business.”