Biba looks to create its own solution to trade credit problem

Biba is forming a new group to promote trade credit insurance following the failure of the government scheme to flush fresh capacity into the market.

The state top-up scheme offered £5bn in capacity, but only a tiny fraction was taken up, with many brokers saying it was too costly and inaccessible to businesses.

Biba believes that one positive outcome of the scheme was to increase communication between brokers, and now the trade body wants to build on that momentum.

Head of technical services Peter Staddon said: “The government scheme had its benefits and its failures. Biba identified these with our broking partners, and the analysis carried out by the Department for Business, Innovation & Skills (BIS) following a broker survey supported that.

“Our group will be identified as a conduit to excellence, and consequently we have extended the invitation to the BIS to join the group and discuss with us issues surrounding the trade credit insurance scheme, as well as the market in the UK, and the position in which brokers and their clients found themselves following the dramatic reduction in available cover in the UK.”

The first meeting of the committee, which is made up of Biba members, will meet in mid-February. The committee will also meet with the ABI to discuss broking issues.

Staddon added: “There has never been a better time for Biba to work with our member partners and build a simple trade credit insurance scheme for members to provide cover for their clients via an online solution.

“I would welcome any Biba member to register their interest with me in providing this solution.”