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: A return to core competencies: visual merchandising and customer service...
04.05.2020   #brick and mortar retail #services

A return to core competencies: visual merchandising and customer service

Showrooming with samples in brick-and-mortar retail

Brick-and-mortar stores are facing tremendous pressure: competition, pricing pressure, shifting consumer habits. Is setting up your own online store the answer? Unfortunately, it’s not that simple. ...

Thumbnail-Photo: Event: E-commerce Berlin Expo 2021
28.08.2020   #online trading #e-commerce

Event: E-commerce Berlin Expo 2021

E-commerce Berlin Expo is the biggest pure-play e-commerce event in the (tech) capital city of Germany. Over 9,000 visitors and 200 exhibitors are expected every year.

E-commerce Expo views itself as a community and a meeting point for all major decision-makers in the e-commerce sector. We bring together leaders in the e-commerce industry to offer online sellers and retailers the opportunity to develop their ...

Thumbnail-Photo: AfterPay: Survey on the shopping behaviour of Germans...
20.07.2020   #online trading #e-commerce

AfterPay: Survey on the shopping behaviour of Germans

German consumers will make a larger share of their purchases online in July

AfterPay Insights’ end of June research – now covering more 7.400 interviews with German online shoppers – indicates that German consumers will reduce their overall purchases in July. But at the same time, German consumers say ...

Thumbnail-Photo: Video marketing in times of Corona
09.07.2020   #digital marketing #online marketing

Video marketing in times of Corona

The potential of video content for retailers

The spread of the coronavirus has had a particularly severe impact on the stationary retail industry. Many companies are now increasingly focusing on their online presence to cushion declining in-store sales and to virtually stay in touch with their ...

Thumbnail-Photo: 3 steps to personalisation in e-commerce
04.08.2020   #online trading #e-commerce

3 steps to personalisation in e-commerce

How retailers can build trust and foster customer loyalty

The COVID-19 pandemic has left a visible mark on the retail sector, and companies have had to find new ways to reach consumers effectively in a very short time. Many companies that had previously focused on stationary retail have expanded their ...

Thumbnail-Photo: Job maker 4.0: e-commerce
27.05.2020   #online trading #e-commerce

Job maker 4.0: e-commerce

Retail training and continuing education programs are booming

Digitization in retail and e-commerce growth present fresh challenges for retail employees and the retail world. That’s why interest in the new "E-Commerce Merchant" dual vocational training course offered by Germany’s HDE ...

Thumbnail-Photo: Virtual pop-up stores
29.06.2020   #virtual reality #pop-up store

Virtual pop-up stores

Here today, change Up tomorrow

They spring up like mushrooms, only to vanish again shortly thereafter – pop-up stores are trendy and now they also increasingly “pop up” online. We spoke with Mohamed Haouache, CEO and Founder of Storefront, about the magical ...

Thumbnail-Photo: Smart clothing to drive fitness wearable revenue...
10.06.2020   #trend research #fashion

Smart clothing to drive fitness wearable revenue

New report forcasts a rise of 11 billion Dollar by 2025

A new report from Juniper Research forecasts that annual revenue of integrated fitness clothing will rise from approximately $1 billion in 2020 to $11 billion in 2025. This rapid growth, boosted by higher pricing, will see smart clothing become the ...

Thumbnail-Photo: Growth of online grocery sales in 2020
30.04.2020   #online trading #e-commerce

Growth of online grocery sales in 2020

New research by Mintel

The latest research from Mintel reveals the online grocery market is forecast to grow by 33 percent in 2020 to reach an estimated value of £16.8 billion, up from £12.7 billion in 2019. This phenomenal rise follows four consecutive years ...

Thumbnail-Photo: Which businesses should be open?
17.06.2020   #brick and mortar retail #coronavirus

Which businesses should be open?

MIT study looks at tradeoffs between economic value and public health, across different types of retail

Banks and bookstores. Gyms and juice bars. Dental offices and department stores. The Covid-19 crisis has shuttered some kinds of businesses, while others have stayed open. But which places represent the best and worst tradeoffs, in terms of the ...

Supplier

POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen