A major credit insurer has pulled out of the Government's trade credit relief scheme announced in last month's budget.
In a letter to policyholders seen by The Grocer, Bob Lilley, MD of broker Credit Indemnity and Financial Services (CIFS), slammed the policy as expensive, short-term and unproven.
The letter reveals brokers were not consulted when the government was putting together its scheme, and warns that exporters are not covered by any guarantees.
The letter also expresses concerns about what will happen when the scheme expires in December. "What happens afterwards?" "Will those taking up the offer of top-up cover and trading at artificial levels merely be back to earth with a bump on the scheme's expiry?"
Food and drink suppliers and wholesalers agreed with many of the letter's criticisms of the plan.
"The scheme is completely worthless as far as we're concerned," said one supplier.
"It only covers reductions in limits made after 1 April - but the cuts in limits were all made well before then, and we're offered no help on those. There's no support for where cover is withdrawn either, and that's where we really need a safety net."
Wholesaler Rowan International said the lack of credit insurance continued to hit some of its suppliers. "Several of our customers are experiencing difficulties," said CEO Alan Saywell.
In a letter to policyholders seen by The Grocer, Bob Lilley, MD of broker Credit Indemnity and Financial Services (CIFS), slammed the policy as expensive, short-term and unproven.
The letter reveals brokers were not consulted when the government was putting together its scheme, and warns that exporters are not covered by any guarantees.
The letter also expresses concerns about what will happen when the scheme expires in December. "What happens afterwards?" "Will those taking up the offer of top-up cover and trading at artificial levels merely be back to earth with a bump on the scheme's expiry?"
Food and drink suppliers and wholesalers agreed with many of the letter's criticisms of the plan.
"The scheme is completely worthless as far as we're concerned," said one supplier.
"It only covers reductions in limits made after 1 April - but the cuts in limits were all made well before then, and we're offered no help on those. There's no support for where cover is withdrawn either, and that's where we really need a safety net."
Wholesaler Rowan International said the lack of credit insurance continued to hit some of its suppliers. "Several of our customers are experiencing difficulties," said CEO Alan Saywell.
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