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<\/div>\nCredit insurer Allianz Trade has slashed cover for Boohoo suppliers, which could hit the online retailer\u2019s cashflow.<\/span><\/p>\n Cover has been cut by an average of 50%, with some suppliers to the fast fashion retailer having their coverage level cut to zero from September, according to The Sunday Times.<\/span><\/p>\n It follows credit insurers cutting cover for fellow fast fashion giant Asos in May.<\/span><\/p>\n Credit insurance protects suppliers against the risk of their client going bust before payment is received for products that have been ordered.<\/span><\/p>\n When cover is unavailable, many suppliers demand payment for goods upfront, which can impact a retailer\u2019s cashflow.\u00a0<\/span><\/p>\n A Boohoo spokesman told the newspaper: \u201cWith the credit insurance capacity less than 50 utilised, we wouldn\u2019t expect any real impact from the reduction.\u201d<\/span><\/p>\n As of February, Boohoo had a net cash position of \u00a35.9m and has access to a \u00a3325 million revolving credit facility.\u00a0<\/span><\/p>\n Sign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span>\u00a0<\/span><\/strong><\/p>\n It comes as Boohoo puts pressure on supplier to cut costs. In May, the online fashion firm asked suppliers for a discount on <\/span>delivered and undelivered clothing.<\/span><\/p>\n The retailer has particularly targeted its Turkish suppliers. It has asked them for a 30% discount on outstanding orders as it looks to achieve the same level of cuts it has with Pakistani partners.<\/span><\/p>\n The retailer<\/span> plunged to a \u00a390.7m pre-tax loss in its full-year to February 28, as shoppers deal with the ongoing cost-of-living crisis and flock back to physical stores post-pandemic.<\/span><\/p>\n Sales slipped 11%, or 9% in the UK, but Boohoo said it expects performance to improve in its current financial year.<\/span><\/p>\nSubscribe to Retail Gazette for free<\/strong><\/h5>\n