COMMERCIAL

SCREWFIX

Advising on arrangements to provide credit under an Enterprise Finance Guarantee, a Government-backed scheme which aims to offer credit to small businesses which have previously been refused credit or only have limited credit facilities. Previously, this scheme had only been made available to banks and other financial institutions, and so we worked closely with our client and the Government’s advisers to produce bespoke documentation for use in the retail sector, to ensure that the terms governing the credit and the guarantee were applicable to our client’s business without going beyond the confines of Government policy.

Our work specifically involved reviewing and negotiating the terms on which the Government would guarantee trade credit offered by Screwfix (including the eligibility criteria, our client’s reporting obligations and the triggers for re-payment or withdrawal of the credit and the guarantee) and updating our client’s own standard terms and conditions to reflect these new credit arrangements.

This scheme aims to promote and assist with the set-up of small businesses and Screwfix is the first UK retailer to be able to offer credit to its customers under the scheme.

 

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