ACS

The Department for Business, Innovation and Skills (BIS) has announced changes to the Government’s trade credit insurance scheme which will mean many more firms can now purchase top-up cover. Since 1 May, companies who have had their credit insurance cover reduced have been able to purchase six months top-up cover under the £5bn Government Scheme. In response to requests from business, from 10 June eligibility for the scheme will be backdated to include suppliers who had their cover reduced since 1 October last year. Previously, the Scheme was available to companies who had cover reduced since April this year. 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).

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.”

ACS Chief Executive James Lowman said: “We have been pressing Government to make their trade credit insurance scheme more meaningful, and this is a small step in the right direction.”

To apply or for further information companies should contact their trade credit insurer. Further information is also available through Businesslink.