The government has announced that its Trade Credit Insurance scheme, first unveiled in June last year, has been extended by six months to 30 June 2021.
The scheme ensures that Trade Credit Insurance can receive up to £10bn of government guarantees, providing essential cover to thousands of business-to-business transactions, particularly in non-service sectors, such as manufacturing and construction.
The government-backed £10bn guarantee now ensures that the “vast majority” of Trade Credit Insurance coverage is maintained across the UK.
The scheme was initially available on a temporary basis for nine months, backdated to 1 April 2020, and was originally set to run until 31 December 2020, with a potential for extension “if required”.
Commenting on the extension, Graham Walsh, ABI senior policy adviser, General Insurance said: “Maintaining trade credit insurance cover between suppliers and their clients is a key component in enabling the UK economy to overcome some of the challenges arising from the pandemic.
“We’re pleased to have been able to help the Government agree an extension to the scheme, meaning UK businesses can continue to benefit from a greater level of protection from trade credit cover than might have otherwise been possible.”