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Government's extends trade credit insurance top-up scheme
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10/06/2009
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Firms that previously fell outside the scope of a government scheme to top up their trade credit insurance will now be able to benefit from further backdating.Since 1 May, companies that had their credit insurance cover reduced have been able to purchase six months top-up cover under the government scheme. Now, in response to requests from business, 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 the change would give 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," he added.
The scheme, which runs until 31 December, 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 £1 million (whichever is the lower).
To apply or for further information companies should contact their trade credit insurer. Further information is also available through Businesslink.
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Author
Ken Hurst
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