Working banking system and credit insurance needed

Without a credit insurance scheme, small business will continue to fail, says Bill Hobbs

YOU would be forgiven for thinking Fogape was a coffee drink. It’s not. It’s the name of a highly regarded, Chilean state-sponsored, small business loan guarantee scheme.

With a small amount of seed capital, years ago, the Chilean government kick-started a loan insurance guarantee scheme to provide viable small businesses with access to bank credit on affordable terms.