Govt launches Trade Credit Insurance top-up

Date: 6th May 2009

A government scheme to protect small businesses against buyers defaulting on payments has been launched.

The department of business's programme top-up is aimed at small organisations which have been affected by the withdrawal of credit insurance in the private sector.

For more detailed information on the scheme, which provides cover of up to £1 million and runs until the end of this year, managers should talk to an accountant.

Peter Mandelson, business secretary, commented: "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 reduction in trade credit insurance."

He added that it is a "targeted transitional measure" which would boost both cashflow and supply chains.

A recent investigation by the Federation of Small Businesses found that four-fifths of companies felt that certain measures in last month's budget would negatively impact on them.