The government has announced that those businesses with supply chains which rely on Trade Credit Insurance and who are experiencing difficulties maintaining cover due to the current pandemic will get support from the government.
Trade Credit Insurance provides cover to a huge amount of businesses to business transactions, especially in the manufacturing and construction industries, and gives businesses the confidence to trade with one another. Due to the Coronavirus and businesses struggling to pay bills, they risk having credit insurance withdrawn or premiums increasing to unaffordable levels.
To prevent this from happening, the government will temporarily guarantee business-to-business transactions currently supported by Trade Credit Insurance. This will support supply chains and help businesses to trade with confidence.
The guarantee is scheduled to last until the end of the year and will be followed by a review at a later date.
As of April 2020, there was over £171 billion in business activity insured, covering transactions between 13000 suppliers and 650,000 buyers.
Commenting on the launch of a temporary government backed guarantee to support the provision of trade credit insurance for businesses, Adam Marshall, BCC Director General, said:
“The government has demonstrated once again that it is listening to the concerns of our business communities.
“The launch of a government-backed guarantee to support the provision of trade credit insurance will help ensure that this vital lifeline remains available to businesses during and after this crisis, helping to maintain supply chains and trade.”
For further information on the support and guidance available to your business please visit our Coronavirus Business Support Hub.