Home / Knowledge / News / Extend trade credit Top-Up say retailers
Extend trade credit Top-Up say retailers
21
Oct '09
38 per cent of large retailers and 28 per cent of small and medium-sized ones report the reduction or withdrawal of trade credit insurance has negatively impacted their businesses.

The results are part of the British Retail Consortium's (BRC's) latest Quarterly Credit Conditions Monitor, published today (Tuesday). The vast majority of respondents feel trade credit insurers do not assess risk accurately: 92 per cent of large firms and 74 per cent of SMEs believe this to be the case.

One retailer said credit insurers, "Apply industry-wide criteria to individual companies without looking at specific company circumstances. It is easier for the risk assessors to just repeatedly say 'No cover' rather than argue for the insured company."

In the April Budget the Government announced the introduction of a temporary Trade Credit Insurance Scheme and has since improved some elements of it. But almost all retailers surveyed believe this has not gone far enough. 95 per cent of SMEs and 85 per cent of large retailers responded that the top-up scheme had yet to help their businesses.

To make a real difference the BRC believes eligibility for the top-up scheme cover period must be extended back to 1 April 2008, when insurers started to remove cover as the downturn began. The current cut-off date is 1 October 2008.

The top-up scheme is due to end shortly – on 31 December 2009. 77 per cent of large retailers and 59 per cent of SMEs believe the scheme should be extended beyond this date.

Tom Ironside, BRC Business Environment Director, said: "It's vital to retain trade credit insurance – especially in the important run-up to Christmas period and beyond.
"If trade credit insurance is withdrawn, suppliers demand to be paid upfront. This can cause cash flow problems for retailers, leading them to cut jobs and stock as they divert money to pay suppliers.

"Retailers are far from convinced that insurers accurately assess trade credit risks. The Government must put pressure on these companies to ensure proper research is undertaken so more accurate underwriting decisions are made.

"The Government has made an attempt to help retailers through its top-up scheme. But to make a real difference eligibility, needs to be extended to April 2008 – when the cover started to be withdrawn. The top-up insurance scheme is due to finish at the end of this year and VAT is returning to its higher level at the same time. To prevent the retail recovery and the three million jobs provided by the sector being undermined, the top-up scheme must be retained into 2010."

British Retail Consortium


Must ReadView All

Courtesy: BekaertDeslee

Textiles | On 23rd Oct 2017

BekaertDeslee to expand North American facility

BekaertDeslee, one of the largest manufacturer of mattress textiles...

Courtesy: A&E

Textiles | On 23rd Oct 2017

A&E unveils Magic using Repreve sewing thread

American & Efird (A&E), a leading developer of industrial and...

Courtesy: Messe Frankfurt

Textiles | On 23rd Oct 2017

Over 4,000 exhibitors attend Intertextile Shanghai 2017

Another successful Intertextile Shanghai Apparel Fabrics has wrapped...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
76.1%
No
12.7%
Skip
11.3%

Total Votes: 71

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
28.2%
Skip
9.9%

Total Votes: 71

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.9%
No
9.9%
Skip
4.2%

Total Votes: 71

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
76.1%
No
11.3%
Skip
12.7%

Total Votes: 71


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search