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Has the credit insurance scheme worked for you?

Drapers would like to hear from readers about their experiences accessing the government’s credit insurance guarantee scheme, which was introduced earlier this month to help business suffering from a reduction in cover.

Are you a supplier who has applied for the cover? How hard/easy has it been to access the credit insurance guarantee scheme? Has it made a difference to your business in real terms?

Are you a retailer that had had cover clipped by the insurers? Has the scheme done anything to ease pressure on your suppliers?

Drapers wants to keep on top of whether the government’s scheme, which was announced by Chancellor Alistair Darling at last month’s Budget, is actually easing lines of credit for the fashion industry or if the scheme, as several trade bodies have suggested, hasn’t gone far enough to address the issues the retail and supply sectors are facing.

The scheme was designed to provide up to £5 billion of extra insurance as part of the Working Capital Scheme to help mitigate cash flow problems for businesses with short term difficulties. The scheme is designed toenable businesses to buy six months “top up” insurance from the government from May 1 to December 31 but the scheme only applies to credit reductions suffered from April 1 this year. Retailers that had all their credit cover withdrawn were not eligible at all.

Email us with your views in confidence at jessicapricebrown@emap.com.

We will pass your information on to the British Clothing Industry Association (BCIA), which continues to campaign on behalf of the sector about the credit insurance issue.

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