BMF’s scheme is given the go ahead
Published: 03 October, 2013
The BMF’s pilot Trade Credit Enterprise Finance Guarantee Scheme is now ready to go ahead after contract delays by government lawyers have now been cleared.
The Scheme operates under the government’s Enterprise Finance Guarantee Scheme and offers merchant members the ability to make credit available to new or existing small and medium enterprise trade customers that they would normally have to refuse.
- The Scheme guarantees 75% of the credit level offered with value is capped at a preset level
- Premiums are payable monthly at a cost of £1.67 per £1k of cover
- There are two options of premium calculation:
- Charge is based on credit level agreed or,
- If you are willing to submit details of debtor balance each month the charge is based on the credit level used.
For either option you only pay for the period you need the credit limit.
This pilot Scheme will run until 31 March 2014 although all credit guarantees made before that end date will continue to run on for the length of their agreed period.