The comments from Bibby Financial Services come on the back of news that the £5bn government fund set up to help small and medium-sized businesses which have seen their insurance cover diminish has only been used by 72 companies.
Of the £5bn earmarked to support SMEs through The Trade Credit Insurance Top-up Scheme, which was launched in May to help businesses that have had their cover reduced by risk-averse insurers, only £18m has so far been used.
the £5bn government fund to help small and medium-sized businesses
which have seen their insurance cover diminish has only been used by 72
companies
"This is a huge waste of funding, and the Government clearly needs to be doing more to communicate that this support is available to SMEs," said Edward Rimmer, chief executive at Bibby Financial Services.
However, the scheme recently revised its eligibility criteria amid criticism that it excluded a large number of businesses that weren't seeking the minimum level of protection.
"Although the eligibility requirements have been altered to allow smaller businesses to use the fund, these measures are not enough to ensure the fund is utilised by a large number of firms," said Rimmer.
"The scheme ends in December, and with the current downturn expected to last well beyond the next 12 months, unless the Government extends the scheme until the end of the first half of 2010, at the very least, then these small firms will have completely missed the boat through no fault of their own."
