TTF launches credit insurance initiative

Timber Trade Federation help launch a new credit insurance initiative designed specifically for companies operating within the timber sector.

New scheme designed specifically for timber sector.

The Timber Trade Federation has teamed with industry leaders Aon Trade Credit and Credit Indemnity and Financial Services (CIFS) to launch a new credit insurance initiative designed specifically for companies operating within the timber sector.

Explaining the move in a letter to members, John White, chief executive of the TTF, says that UK business failures are at their highest levels for many years.

Eight businesses cease trading every day.

"In addition", says Mr White, "our industry is particularly susceptible to interest rate volatility".

"Rates are now at a six-year high of 5.75 per cent, which is impacting stockholding and outstanding debtor costs".

"Combined with stock purchasing constraints and spiralling fuel prices, the industry is confronted with an uncertain outlook".

A major consequence, says Mr White, is that companies in the timber trade face a growing threat to their balance sheet from company failures and slower payments and it is precisely these areas that the Federation has asked Aon Trade Credit and CIFS to address with the new initiative.

The TTF scheme has been designed and is administered by credit insurance professionals with a long-term involvement with the timber trade.

It features a keenly-priced rating structure and extremely flexible underwriting terms, while policyholders will benefit from realistic appraisal of credit limits based on in-depth understanding of current trading conditions within the industry.

In addition, insurance protection against the risk of customer failure is backed by a full range of receivables management support services, including an annual health check of policyholders' credit management and risk control processes.

Commenting on the TTF's initiative, John White said: "We believe this to be the only scheme specifically tailored to the needs of the timber trade".

"It's been launched at a time when a difficult trading environment means the need for credit risk protection is increasingly acute and we hope businesses in our sector will benefit from this scheme.".

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