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Firms suffering from a reduction in credit insurance will from
today be able to purchase up to six months top-up cover as part of the
Government's trade credit insurance scheme, announced in last week's
Under the scheme, which goes live today and runs until 31
December this year, suppliers will be able 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).
Companies from all sectors and from all stages of the UK
supply chain, which have suffered from a reduction in cover from 1
April 2009, will benefit from the increased certainty that this scheme
gives - providing real and targeted help for British Businesses.
The scheme was established in response to growing concern from
businesses that reductions in the value of insurance cover create
pressure on suppliers to shorten payment terms, and can place
additional pressure on businesses' working capital facilities.
Business Secretary Lord Mandelson said:
"The Government's Trade Credit Insurance top-up scheme
provides a lifeline for businesses to help them address the specific
challenges that they are facing as a result of the reduction in trade
"This scheme is a targeted transitional measure to help
companies secure the cash flow they need and restore confidence
throughout supply chains. Risk is shared between Government and the
private sector striking the right balance between supporting businesses
and protecting taxpayers' money."
A maximum of £5bn of top-up cover for trade credit insurance
will be available through the scheme, which is part of the Real Help
package and will be delivered through the Working Capital Scheme.
To apply or for further information companies should contact
their trade credit insurer. Further information is
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Article Published/Sorted/Amended on Scopulus 2009-05-12 13:30:35 in Tax Articles