Government plans credit bail out - PC Retail

Government plans credit bail out

State funded lifeline in the works for businesses hit by tightening credit insurance
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The Government is set to announce multi-billion pound plans to bail out thousands of businesses that are being impacted by the reduction or retraction of credit by insurers in the UK.

In the tech sector, some of the largest retailers such as PC World, Currys and Comet have been been threatened by reduced credit insurance in the last few weeks. Big name High Street stores Zavvi and Woolworths recently collapsed due to similar factors.

According to The Times, the Government is planning to offer up to 50 per cent of credit insurance payouts, with a £5 billion cap put on claims as a whole. The relief will apparently be offered to ‘medium risk’ firms that have had cover reduced but not withdrawn.

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Credit's due

It might sound like a small detail to those not in the game, but any retailer responsible for a large chain of shops ? indeed, even just a single store retailer ? will tell you just how fundamental credit is to the vitality of the business.