Global broker Marsh says the trade credit market is slowly recovering after a vicious downturn in 2009.

“After a difficult year for trade credit insurance, the market is becoming more positive,” Tim Smith, Marsh’s new Head of Trade credit for Europe, the Middle East and Africa (EMEA) said in London.

The global broker has opened a trade credit desk covering the three regions to help businesses access insurance.

The move follows Marsh’s acquisition of HSBC Insurance Brokers earlier this year.

Marsh EMEA CEO David Batchelor says trade credit insurance is on the rise as companies recover after the global financial crisis.

“Our clients have been severely impaired by the lack of availability of trade credit during the last year or so,” he said.

“Following the global economic difficulties, Marsh clients are now using trade credit as a tool to support growth in new geographies by collateralising debts.

“Trade credit insurance remains critical to their cash flow, with bank credit still tight.”

Paris-based credit insurer Coface said in March that industries must review their business models if they are to survive after it posted losses of €163 million ($248.8 million) in 2009.