On Thursday 14 May 2020, the Government announced that businesses with supply chains that rely on Trade Credit Insurance, and who are experiencing difficulties maintaining cover due to coronavirus, will receive support from the Government.
Trade Credit Insurance provides cover to many business transactions, particularly those in non-service sectors. However, the coronavirus has meant that businesses are struggling to pay bills and in turn, they risk having credit insurance withdrawn or their premiums increasing to unaffordable levels.
To help mitigate this problem, the Government have announced that they will be temporarily guaranteeing business-to-business transactions that are currently supported by Trade Credit Insurance. This will ensure that the majority of insurance coverage will be maintained across the market, supply chains will be supported, and businesses will be able to trade with confidence going forward.
More information on this can be found here.