Hunt Valley, MD, December 4, 2009 – This week, international trade credit insurer Atradius, based in Hunt Valley, MD, released its Global Economic Crisis Survey based on more than 3,500 interviews with executives and senior managers from companies in North America, Europe, Asia and Australia.  The survey was designed to learn business leaders’ views on current economic indicators, including:

• Viability of their businesses, industries and financial institutions
• Value of government interventions
• Business practice modifications to maintain cash flow and prevent payment defaults

“This survey provides us with a current snapshot of the global business community and our domestic economy,” said Brett Halsey, President, Atradius Trade Credit Insurance, Inc., part of the Atradius Group, which manages insured trade worth more than $20 billion annually.  “Economists’ forecasts and insights from policy leaders are helpful, but when it comes to managing risks and uncovering new business channels in this economic environment, it is vital to understand how business decision makers are modifying their practices and planning for a recovery.”

Key survey findings include:

Recovery Timeline

• Nearly 40 percent of global respondents expect the economic crisis to end in the first quarter of 2010.  Sixty-six percent of US respondents anticipate a rebound in business by the end of 2010.
• Fifty percent of US respondents believe their companies’ financial position will stabilize at the end of 2009, and 30 percent anticipate an improvement in their financial stability by this year’s end. 

Impact on Business Practices-US respondents

• Thirty-four percent have suffered a decrease in their access to financing.
  • The US remains one of the most pessimistic countries surveyed when it comes to expectations of failures of large banks and financial institutions, with nearly half reporting an anticipated increase in failures.
• Forty percent have changed their credit terms, 34 percent have increased their use of outsourced collection services, and 41 percent have increased the frequency of their buyers’ credit reviews.
• Finding new markets or sales channels for products and services (50 percent) and placing a heightened focus on customer service (58 percent) have proven essential elements for business continuity, as have gaining access to financing and conducting staff level reviews.
• Thirty-two percent are considering or have begun using credit insurance as a risk mitigation tool.

Government Stimulus Efforts

• In 17 of the 20 surveyed countries, more than 40 percent responded that they have experienced no impact from government initiatives to stimulate the economy.
• In the US, 56 percent think the government’s efforts thus far have largely been ineffective, and 62 percent think the government should stimulate economic growth through tax cuts and incentives with only 1 percent reporting favor with additional tax increases.

“To effectively manage risk and capitalize on economic opportunities in this market requires an understanding of business leaders’ mindset—what actions boost confidence, which in turn inspires activity and the capital gains needed for long-term investments,” added Halsey. “Recovery rests with our economy’s business leaders, which is why these insights and this level of outreach are so significant to our business endeavors related to protecting companies from the risk of catastrophic losses and uncovering new areas of economic opportunity worthy of investment.”

The full “Atradius Global Economic Crisis Survey” can be downloaded from www.atradius.com. 

About Atradius:

The Atradius Group provides trade credit insurance, surety and collections services worldwide, and has a presence in 42 countries. Its products and services aim to reduce its customers’ exposure to buyers who cannot pay for the products and services they buy. With total revenues of more than EUR 1.8 billion and a 31% share of the global trade credit insurance market, its products help protect companies throughout the world from payment risks associated with selling products and services on credit. With 160 offices, it has access to credit information on 52 million companies worldwide and makes more than 22,000 trade credit limit decisions daily.

For further information:
Brett Halsey, President
Atradius Trade Credit Insurance, Inc.
Tel: +1 410-568-3824
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
www.atradius.com