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"If trade credit insurance is withdrawn, suppliers demand to be paid upfront.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 But to make a real difference eligibility, needs to be extended to April 2008 – when the cover started to be withdrawn.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

Building of Ethiopian textile unit by Chinese firm starts

Textiles | On 22nd Jan 2018

Building of Ethiopian textile unit by Chinese firm starts

Chinese firm Wuxi No. 1 Cotton Mill will build a textile plant in...

JD.com to invest $3.1 bn to revive industry in NE China

Apparel/Garments | On 22nd Jan 2018

JD.com to invest $3.1 bn to revive industry in NE China

To back the government’s campaign to revitalize the traditional...

SIMA makes pre-budget recommendations to Indian govt

Textiles | On 22nd Jan 2018

SIMA makes pre-budget recommendations to Indian govt

Exemption of 5 per cent goods and services tax (GST) on raw cotton,...

Interviews View All

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

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

January 2018

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
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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