Government to guarantee Trade Credit Insurance support
Released 13 May 2020
The Government has announced that it will temporarily guarantee business-to-business transactions currently supported by Trade Credit Insurance, ensuring the majority of insurance coverage will be maintained across the market.
Trade Credit Insurance provides cover to hundreds of thousands of business to business transactions, particularly in non-service sectors, such as manufacturing and construction. It insures suppliers selling goods against the company they are selling to defaulting on payment, giving businesses the confidence to trade with one another. But due to Coronavirus and businesses struggling to pay bills, they risk having credit insurance withdrawn, or premiums increasing to unaffordable levels.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 has said that it will temporarily guarantee business-to-business transactions currently supported by Trade Credit Insurance.
Further information on this announcement can be found at https://www.gov.uk/government/news/government-to-support-businesses-through-trade-credit-insurance-guarantee.