EXCLUSIVE: Mesh downplays Euler Hermes credit insurance withdrawal


EXCLUSIVE: Mesh downplays Euler Hermes credit insurance withdrawal

Paul Kunert

Mesh Computers has played down the potential impact of credit insurer Euler Hermes' decision to remove cover on the firm, claiming many of the suppliers it currently buys from use other indemnity providers.

All of the major credit insurers are seeking to reduce their exposure across all industries following a rise in claims this year and the channel is no different, although there is a specific nervousness toward local retail PC makers.

Distributors confirmed their secured limits on Mesh have been entirely withdrawn but according to Saeed Sheykh, Mesh financial controller, only its relationship with component specialist Microtronica will be affected.

"We have been informed that Euler has withdrawn credit insurance but that will have no impact on our business as only Microtronica was trading with us under insurance from Euler," he said.

The reason for the removal of the lines of credit according to Sheykh was that the UK builder community is perceived as a "high risk sector".

Microtronica was unavailable to comment.

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