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.

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.}