SMEs could ‘receive help with
credit insurance’
A new scheme to improve small businesses access to credit insurance is expected to be unveiled in Wednesday’s Budget, according to reports.
The Financial Times has suggested that the scheme could form the
‘centrepiece’ of the Chancellor’s plans to help small and medium-sized
enterprises (SMEs) struggling in the downturn.
If confirmed, the initiative could help thousands of firms who have been adversely affected by a reduction in the availability of credit insurance, particularly in high risk areas such as construction.
The insurance, which protects companies against the risk of non-payment, has also become more expensive since the beginning of the recession.
Commenting on the reports, David Frost, Director General of the British Chambers of Commerce, said: ‘Supply chains have undoubtedly been hit by the withdrawal and reduction of credit insurance facilities. If implemented, a Government guarantee scheme will help to ease the difficult conditions that small and medium-sized firms are operating in.
‘It is crucial that any scheme is quickly and efficiently implemented so that struggling companies can take advantage of it as soon as possible. It will be business that drives us out of recession, so supporting them through this downturn is crucial.’
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