Trade credit insurance support scheme

The UK government recently announced support of business to business transactions (goods and services) by guaranteeing trade credit insurance.

The support enables trade credit insurers like us to continue providing extensive cover for our clients, and pursue our mission of securing B2B trade in the face of the unprecedented challenges to supply chains posed by Covid-19.

 

 

 

Listen to the BBC Radio 4 interview with Milo Bogaerts, chief executive of Euler Hermes UK and Ireland, about trade credit insurance government support scheme.

Government support scheme

There were over 17,196 insolvencies in 2019 in the UK.

 

2020 insolvency figures are expected to be significantly higher due to the Covid-19 pandemic.

The current crisis brings with it a significant increase in unpaid invoices and the risk of non-payment due to the deterioration of companies’ credit worthiness in the UK and around the world.

Through the provision of continued insurance cover, the support program* will shield insured companies from these risks, substantially reducing the domino effect that payment defaults can create across the supply chain. It will allow supply chains to get going as economic activity opens up following the easing of lockdown.

* The Government-backed trade credit insurance support scheme will provide a £10 billion guarantee, covering 90% of domestic and export insured transactions back-dated to the 1st of April 2020 in exchange for 100% of premium up until end of 2020.

What is Trade Credit Insurance?

Trade credit insurance covers B2B companies against the risk of late or non-payment. It serves an important economic purpose by being the “invisible glue” that holds together industries and trade. By giving trust to trade it keeps the economy going and it also reduces systemic risk by preventing chains of insolvencies.

 

How we help businesses in times of crisis?

  • Companies* we cover get paid even when their customers fail, which supports their cash flow and they can trade with confidence
  • We monitor the financial strength of our clients’ customers. Information on customers is more critical than ever in times of uncertainty
  • We help businesses avoid catastrophic loss of revenue through an early warning system: when a few customers represent a large proportion of revenue, if one goes bankrupt the risk for the company is high

* Eligibility: companies that engage in B2B trade and offer terms of payment.

Trade Credit Insurance underwrites an estimated £350 billion of economic activity to 630,000 UK businesses each year (TFG).

"We predict trade and credit risk today, so companies can have confidence in tomorrow.”

Please fill out this short form and we will be in touch.

At Euler Hermes we value your time and will try to respond to your enquiry on the same working day. ​

Some questions may take a little longer to answer, but we ​aim to provide you with a response within 3 working days.
​ ​
​ ​

 

 

Get a free quote

 

 

Call us: 0800 056 5452