A pilot trade credit scheme aimed initially at the trade users of the Kingfisher group of stores – Screwfix and B&Q’s Tradepoint – has so far enabled small firms to secure credit of £500,000, with more trade customers in the pipeline to use the scheme.
The alternative type of finance has been made available using an extension to the government’s Enterprise Finance Guarantee scheme. The aim of the pilot scheme is to make credit more widely available to those viable businesses in the construction industry who struggle to secure the support needed to meet the upfront cost of materials.
There has been a wide range of interest in the pilot trade credit scheme from across a range of businesses sectors. Negotiations are now underway with nationally and regionally based builders merchants, as well as the development of a model that would pave the way for smaller businesses to participate through their trade association.
Business and Enterprise Minister Michael Fallon said:
"Conditions in the construction industry remain challenging, but taking an innovative view of how government support schemes are deployed, such as with EFG and the work with Kingfisher, can make a real difference to the sole traders and smallest firms that struggle to access credit.
The success of the pilot scheme is encouraging so far, and rolling it out amongst other builders merchants nationally and locally will boost confidence among our smallest traders in the construction industry."
Ian Cheshire, Group Chief Executive of Kingfisher plc, added:
"The pilot is showing encouraging signs that trade customers of Screwfix and B&Q’s TradePoint are making good use of the extra credit available to them through the Enterprise Finance Guarantee scheme. Smaller business such as these will be a vital engine of economic growth for the UK so I’m pleased that we’re able to support that."
The pilot ensures that businesses that would have previously been turned away for credit by Kingfisher because of a lack of credit history or track record can now be helped. The risk is shared by providing government guarantees of 75 per cent on individual trade credit facilities. As well as allowing Kingfisher to provide credit to viable businesses outside its present risk profile, the scheme also allows it to increase credit limits for certain existing businesses.
The scheme has been designed so there is no new administrative burden to Kingfisher. All credit decisions will be made by Kingfisher based on existing processes, and customers and frontline staff will see no difference to the trade credit application.
Barhale has completed work on two separate Rapid Action Taskforce Spills projects it is carrying out for Severn Trent.
Börger UK, which has firmly established itself as a leading pump brand since it was set up in Staffordshire in 2004, has moved into bigger, brand-new premises in Shrewsbury.
HUBER Technology UK & Ireland are inviting people to register for their March webinar where they will be providing information about HUBER water intake screens for municipal and industrial applications.
Sulzer has launched a new global Center of Excellence (CoE) for Water Treatment Solutions - the CoE consolidates Sulzer’s wastewater treatment expertise in a unified and global manner.
Hear how Scottish Water has completed its £235 million Ayrshire Glasgow Resilience Project - customers across Greater Glasgow, Ayrshire and East Renfrewshire will now benefit from a more secure and resilient water supply.
Hear how United Utilities is accelerating its investment to reduce spills from storm overflows across the Northwest.
Find out more about the remarkable career opportunities on offer at WSP - scroll down to watch the inspirational video.