Firms suffering from a reduction in credit insurance are now able to purchase up to six months top-up cover as part of the Government's trade credit insurance scheme, announced in the recent Budget.
Under the scheme, which is now live and runs until 31 December this year, suppliers will be able 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).
Companies from all sectors and all stages of the UK supply chain, which have suffered from a reduction in cover from 1 April 2009, will benefit from the increased certainty which this scheme provides.
The scheme is in response to the growing concern of UK businesses that reductions in the value of insurance cover create pressure on suppliers to shorten payment terms, and can place additional pressure on businesses' working capital facilities.
A maximum of £5bn of top-up cover for trade credit insurance will be available through the scheme, part of the Real Help package and delivered through the Working Capital Scheme.
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