10/23/2008 11:42:00 AM
Distributors hit by credit crisis
Distributors are struggling to hold stock in light of pressure in the credit market.
Several handset distributors have privately acknowledged that it is becoming increasingly difficult to insure against credit lines.
One distributor said: ‘There is a material difference to the amount of stock we can hold. The financial crisis is affecting the sheer ability we have to buy products.’
Several distributors have said that credit limits have been reduced in light of current volatility in the debt markets.
One senior manufacturer source said: ‘People who need finance to trade are in a very difficult place. They just can’t get the credit let alone the insurance.’