Credit insurers have been accused of damaging sound businesses by withdrawing or reducing cover.

Ashford-based Brakes, the giant food distribution company backed by US private equity firm Bain Capital, is one of several companies to express anger at the actions of credit insurers.

Finance director Matthew Fearn told the Financial Times of his anger at the amount of time he had to spend trying to convince insurers that Brakes was in good shape.

"I am absolutely furious. I have spent the last three weeks speaking to people when I could have been doing more profitable things.

"We had a good growth strategy in 2008 and strong cash flow, and we don’t have to refinance the business for a few years.

"But I have had to spend countless hours trying to justify this to people."

There are three main players in credit insurance - Coface, Euler Hermes and Atradius.

Coface pulled cover from Brakes, while Euler Hermes reduced cover.

Atradius was said to be still providing Brakes’ suppliers with insurance against goods supplied.

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