Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Credit insurers to meet Government

The Government is to hold talks with all the major credit insurance companies to discuss independent retailers’ credit insurance campaign.

Credit insurance has become a major issue for indies, as highlighted by Drapers last November when we reported that they faced a credit crisis because of changes to brands’ payment terms due to the withdrawal of credit insurance.

In emails seen by Drapers, Thomas Gelderd, senior policy adviser for business finance at the Department for Business Innovation and Skills (BIS), said he was setting up meetings with major credit insurers over the next few weeks.

A survey in January by Drapers and Labour MP Simon Danczuk, who has been leading the campaign with Paul Turner-Mitchell, co-owner of Rochdale indie 25 Ten Boutique, found that among 244 indies, 77% had seen brands’ credit terms change in the previous 12 months.

At the time Danczuk said he would use the survey to push the issue further up the Government’s agenda.

Last month, a delegation of indies and brands met with the BIS to explain how the issue was affecting them.

Nick Modlani, financial controller of men’s young fashion brand Luke, said: “The withdrawal of credit insurance is cutting off the lifeblood of indies and the smaller brands that are struggling to grow with them.”

Gelderd was unavailable for comment.

Readers' comments (3)

  • Credit Insurance is all well and good but the first £750 (in our policy is not covered)
    We've just found out one of our customers - Jean Genie in Manchester - made an order with us probably knowing they were going out of business. I presume they sold our goods and pocked the money with no intention of paying. They are no longer trading now. Stinks big time.
    If this happens again and again we will have to re-think our terms and be pro forma only. Sorry but what other choice do we have?

    Unsuitable or offensive? Report this comment

  • I can sympathise with the comment above because clothing stores are just too bigger risk at the moment. Some Indies have terrible credit history and unless the law changes in regards to pre-packs and so forth, it is of no surprise that credit insurance should be withdrawn. Pro-Forma is the way forward and you can't blame suppliers for this.

    Unsuitable or offensive? Report this comment

  • My faith has been restored. Yippee! They have honoured their obligations and paid in full. Sorry for bad mouthing.

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.