News • 15.07.2020

Retailers say credit insurance plan could increase liquidity during pandemic downturn

Backstop for trade credit insurance

A business man sitting behind a piggybank with a small umbrella over it...
Source: PantherMedia/Andriy Popov

The National Retail Federation welcomed a report released this week calling for a federal backstop for trade credit insurance, saying the proposal could help provide liquidity badly needed by retailers as they recover from the recession brought on by the coronavirus pandemic.

“With retailers already ordering merchandise for the holiday season, vendors need guarantees that they’re going to be paid regardless of the volatility of the current economy,” NRF Senior Vice President for Government Relations David French said. “Trade credit insurance normally provides that guarantee, but it has become increasingly difficult to obtain. This proposal would solve that problem and help retailers make sure they have the inventory they need for a successful holiday season.”

“We support a backstop for trade credit insurance, but a swift response is essential and the congressional calendar is already strained,” French said. “While Congress considers this proposal, we have asked the Treasury Department and Federal Reserve to move forward with a short-term, federally backed loan facility that could be enacted almost overnight. Doing so would provide the immediate cash flow retailers need right now and would support a return to normal trade terms and normal business operations.”

Trade credit insurance is widely used by vendors supplying industries ranging from airlines to retailers to guarantee payment for products sold on credit, protecting $600 billion in sales each year.

Writing on behalf of insurance firms Atradius, Coface and Euler Hermes, economists Robert Litan and Yong Xu on Thursday released a 24-page report spelling out plans for a temporary federal backstop program for trade credit insurance. Major U.S.-based insurers have already cut back coverage by 14 percent since the beginning of the year, which is expected to reduce economic output by $46 billion and reduce hiring by 155,000 jobs across the economy, according to the report. The shortage of the coverage could increase as the pandemic continues, the economists said.

Source: NRF

related articles:

popular articles:

Thumbnail-Photo: Perfect Corp. and Warner Bros. partner for interactive AR movie try-on...
13.06.2023   #Tech in Retail #app

Perfect Corp. and Warner Bros. partner for interactive AR movie try-on experience

YouCam Apps launches an exclusive collection of AR movie effects for Warner Bros. The Flash

Perfect Corp., the leading AI & AR beauty and fashion tech solutions provider and developer of the YouCam Suite of Apps, has launched an interactive augmented reality (AR) movie experience for Warner Bros. Pictures’ upcoming film The Flash. ...

Thumbnail-Photo: LVMH and Epic Games announce strategic partnership...
22.06.2023   #e-commerce #digitization

LVMH and Epic Games announce strategic partnership

Companies aim to transform Maisons’ creative pipeline and customer experiences

At the Viva Technology show, LVMH announced a partnership with Epic Games, creator of Fortnite and Unreal Engine, to transform the Group’s creative pipeline and bring customers new types of immersive products discovery experiences. This ...

Thumbnail-Photo: Be different – be successful
24.08.2023   #brick and mortar retail #customer satisfaction

Be different – be successful

10 examples of how retailers can differentiate themselves in the market with unique shopping experiences

The grey blob – no one wants to be part of it. Small and medium-sized retailers in particular need unique selling propositions to be able to assert themselves against the competition from companies worth billions. But what can ...

Thumbnail-Photo: Beyond the Green Buzz: How to become truly sustainable in retail...
09.08.2023   #retail #sustainability

Beyond the Green Buzz: How to become truly sustainable in retail

Branding, sourcing, and ethics – Insider insights for retailers

Sustainability is today's corporate catchphrase. Yet, discerning genuine efforts from mere claims can be challenging. But how can consumers be sure that sellers genuinely walk the talk? Enter El Green Mall ...

Thumbnail-Photo: Grove Co. announces new retail partnerships with Kroger, Costco and...
08.06.2023   #retail #sustainability

Grove Co. announces new retail partnerships with Kroger, Costco and Hannaford

Leading sustainable consumer products company increases in-store presence at 450 additional brick & mortar locations

Grove Collaborative Holdings, Inc. (NYSE: GROV) (“Grove” or “the Company”), a leading sustainable consumer products company and Certified B Corp, today announced another significant retail expansion for Grove Co., its ...

Thumbnail-Photo: MikMak rolls out e-commerce acceleration platform...
12.06.2023   #e-commerce #retail

MikMak rolls out e-commerce acceleration platform

Platform offers brands insights that drive business performance

MikMak, the leading e-commerce acceleration platform for multichannel brands, today announced the launch of MikMak 3.0. The enhanced platform enables commerce and conversion opportunities across every consumer touchpoint, along with more advanced ...

Thumbnail-Photo: New GS1 Germany requirements in force for better data quality...
12.06.2023   #online trading #digitization

New GS1 Germany requirements in force for better data quality

Brands facing new challenges to providing product content to German retailers through the GDSN

GS1 Germany released two new requirements impacting brands selling food/beverage (and food-adjacent) products to the German market aiming at increasing product data quality passing through the Global Data Synchronization Network (GDSN). ...

Thumbnail-Photo: Scary and clever - marketing for Halloween
20.09.2023   #brick and mortar retail #online marketing

Scary and clever - marketing for Halloween

How do you make the most of 31 October for your business?

Small means, big effect: On Halloween, you can get in touch with your customers in a playful and not too serious way....

Thumbnail-Photo: Social Commerce: Community sells?
04.10.2023   #online trading #sustainability

Social Commerce: Community sells?

Why the community approach is replacing fast delivery among customer demands and what that means for you.

For a long time it was said that fast or even "same day delivery is the key". For Fabian Mischler, this is no longer the only key to satisfied customers. In an interview, the CEO of the social commerce platform ooblee told us why community ...

Thumbnail-Photo: 5 tips for successful TikTok marketing for your online store...
06.09.2023   #online trading #marketing

5 tips for successful TikTok marketing for your online store

How to gain loyal fans for your brand

TikTok is the Wild West of social media: Everything is moving at lightning speed and you only have a blink of an eye to captivate users. If you spend a lot of time on TikTok, you'll know right away...