Government credit insurance top-up will not hep many
Small firms bodies the Federation of Small Business (FSB) and Forum of Private Business (FPB) have added criticism about the tight scope of the government credit insurance scheme, the Times reports.
Stephen Alambritis at the Federation of Small Businesses said: “It is a good start in the right direction but what we would like is those firms that have had their cover withdrawn and those that want to enter the system to have some kind of support from the government as well.”
Phil Orford, The Forum of Private Business’ chief executive, said: “The scheme is welcome news but because it is only available to companies that have had cover reduced from April 1 it comes far too late for businesses that have already failed due to credit insurance being reduced since October last year.”
Small-business owner Allan Cook whose firm AWC Industries had all its credit insurance withdrawn because of the crisis in the motor industry said: “The scheme will not help us because we don’t have any insurance cover provided any more. But I think anything that can be done to help small businesses at the moment that allows them to trade with each other with confidence is to be welcomed,” he said.
Shaun Purrington at Atradius, a credit insurer that helped to develop the initiative, said: “Anything the government announces in this area that supports small businesses has to be a good thing for UK plc.”
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