Credit insurer Euler Trade Indemnity (ETI) and information solutions company Experian have formed an alliance.

Experian will provide ETI with business information from its databases on the non-limited and non-financial sectors, plus its directors' database and several other new data sources it is planning.

ETI will use the information to monitor its risk portfolios, investigate the financial status of its UK clients' customers and evaluate applications for cover.

ETI chief executive officer Russell Benzies said the agreement would enable ETI to add considerable value to its services to small to medium-sized enterprises.

He said the databases were becoming more important.

“These are becoming increasingly relevant and necessary as changing legislation reduces the level of financial information that companies are required to produce and they complement nicely our own proprietary information gathering,” Benzies said.

“The decision to work with Experian was made only after extensive examination of the accuracy and quality of their databases.”