Business Secretary Peter Mandelson recently announced changes that will mean many more firms can now purchase top-up cover as part of the Government's trade credit insurance scheme.
Since 1 May, companies who have had their credit insurance cover reduced have been able to purchase six months top-up cover under the £5bn Government Scheme.
In response to requests from businesses, eligibility for the scheme will be backdated to include suppliers who had their cover reduced since 1 October last year.
Previously, the Scheme was available to companies who had cover reduced since April this year.
Business Secretary Lord Mandelson said:
"This extension will give more small and medium sized businesses flexibility to respond to a reduction in their credit insurance cover. We are acting decisively to help more businesses and allow them the breathing space to adjust their business models in response to the current climate."
CBI Director-General, Richard Lambert said:
"This change, which the CBI called for, gives more help to those businesses left vulnerable without sufficient trade credit insurance cover since the autumn. Restoring confidence is critical to improving the economy, and this gives companies more certainty about their ability to trade."
Also from today credit insurance provider HCC will join the three largest credit insurers (Euler Hermes, Atradius and Coface) as a provider of the Government Scheme.
The Scheme, which runs until 31 December 2009, allows suppliers to purchase Government-backed insurance to either restore cover to the original level or double the amount they are able to obtain from the private sector up to the value of £1m (whichever is the lower).
To apply or for further information companies should contact their trade credit insurer. Further information is also available through Businesslink.
