Government to provide guarantees of up to £10 billion to Trade Credit Insurance schemes for business-to-business transactions
Trade Credit Insurance, which provides essential cover to hundreds of thousands of business-to-business transactions, will receive up to £10 billion of government guarantees, ministers announced today.
The Trade Credit Reinsurance scheme, which has been agreed following extensive discussions with the insurance sector, will see the vast majority of Trade Credit Insurance coverage maintained across the UK.
The guarantees will support supply chains and help businesses during the coronavirus pandemic to trade with confidence, safe in the knowledge that they will be protected if a customer defaults or delays on payment.
Business Secretary of State Alok Sharma said:
The Economic Secretary to the Treasury, John Glen said:
BCC Director General Adam Marshall said:
Stephen Phipson, CEO of Make UK, said:
IoD Head of Europe and Trade Policy Allie Renison said:
CBI Director of Financial Services, Flora Hamilton said:
The scheme is available on a temporary basis for nine months, backdated to 1 April 2020, and running until 31 December 2020, with the potential for extension if required.
The scheme will be followed by a joint BEIS/HMT-led review of the Trade Credit Insurance market to ensure it can continue to support businesses in future.
Notes to Editors