Allianz Trade is cutting the credit cover it provides to suppliers of UK housebuilder Vistry, a move that could tighten cash flow for the struggling firm. The insurer has warned that limits could be cut by as much as 70 per cent, depending on Vistry’s short‑term performance. The changes affect new trading agreements only and do not apply retroactively.

Suppliers normally rely on credit insurance to protect against customer defaults; without it they may need to collect payment up front. Vistry’s chief executive Adam Daniels is focused on boosting cash to reduce debt, after the company sold assets, delayed construction and paid suppliers in just 41 days on average last year.

The group posted a £30mn pre‑tax loss in the first half and announced that CFO Tim Lawlor would leave. Vistry’s shares have fallen almost 80 per cent over two years, though the company says its supply chain remains intact.

Market reaction followed comments from Travis Perkins’ finance chief, who said credit insurance had been pulled from a major housebuilder. Vistry shares fell 10 per cent that day, but the housebuilder denies any supply chain disruption.