As more businesses plan to open up again, the support of the government for the trade credit insurance sector could prove essential. Protecting receivables from the risk of bad debt or insolvency is prudent at all times and arguably more so now.
What this guarantee means for many cash strapped businesses is the confidence to extend credit terms, where they would otherwise opt not to do business or insist on cash up front. This would have the potential to bring trade to a standstill and further debilitate an already struggling economy.
Despite facing significant claims, insurers under this agreement will not drastically cut or reduce the vital cover required to ensure that B2B trade continues without more friction.
Business Secretary of State Alok Sharma said:
“Trade Credit Insurance is a daily necessity for hundreds of thousands of businesses across the UK… This reinsurance scheme is an important step as we carefully set about firing up our economy as we emerge from the pandemic.”
Significant challenges still lie ahead for businesses of all shapes and sizes. However, with government backing, taking out invoice insurance is a simple step to a safer and more secure business. Ensuring that you get paid, despite the risk of default .
We’d be delighted if you get an invoice insurance quote by clicking the link below. It’s a simple process and won’t take long.