The government has confirmed it is to temporarily guarantee business to business transactions currently supported by Trade Credit Insurance. This will enable businesses with supply chains which rely on Trade Credit Insurance, and that are experiencing difficulties maintaining cover due to Coronavirus, to receive support from the government.
Trade Credit Insurance provides cover for business to business transactions, particularly in non-service sectors, such as manufacturing and construction. It insures supplies selling goods against the company they are selling to defaulting on payment.
The government is finalising full details of the scheme to ensure firms are supported and risk is appropriately shared between the government and insurers.
It is intended that agreements will be in place with insurers by the end of May and the guarantees will cover trading by domestic firms and exporting firms.