In response to requests from a wide range of business lobbies, the Government’s trade credit insurance top-up scheme has been extended to increase the eligibility for the 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). The Government has made up to £5bn available for this.
Originally, top-up insurance under the scheme was available to only companies who had cover reduced since 1 April this year. It will now be backdated to include suppliers who had their cover reduced since 1 October 2008.
It will also be possible to purchase up to 28 days’ retrospective cover in circumstances where a business requires continuity of cover from a partial reduction made by insurers in the previous 28 days.
Announcing the extension, 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.”
A fourth provider, HCC, will join the three largest credit insurers (Euler Hermes, Atradius and Coface) as a provider of the Government Scheme.
Details of how to apply for top-up trade credit insurance are available from the insurers, or from the Business Link.