Trade credit insurance guarantee

Last week, the government announced that businesses with supply chains that rely on Trade Credit Insurance, and who are experiencing difficulties maintaining cover due to coronavirus disruption, will get support from government.

In a news story released 13 May 2020, the Treasury said:

Trade Credit Insurance provides cover to hundreds of thousands of business to business transactions, particularly in non-service sectors, such as manufacturing and construction. It insures suppliers selling goods against the company they are selling to defaulting on payment, giving businesses the confidence to trade with one another. But due to Coronavirus and businesses struggling to pay bills, they risk having credit insurance withdrawn, or premiums increasing to unaffordable levels.

To prevent this from happening, the government will temporarily guarantee business-to-business transactions currently supported by Trade Credit Insurance, ensuring the majority of insurance coverage will be maintained across the market. This will support supply chains and help businesses to trade with confidence as they can trust that they will be protected if a customer defaults on payment.

Retail businesses that can now open for business

The following list was updated (13 May 2020) for retail businesses in England that can now open for business.

  • Food retailers including supermarkets
  • Dental services, opticians, audiology services, chiropody, chiropractors, osteopaths and other medical or health services (including physiotherapy and podiatry services), and services relating to mental health.
  • Pharmacies and chemists, including non-dispensing pharmacies
  • Petrol stations
  • Bicycle shops
  • Homeware, building supplies and hardware stores, including where those stores supply equipment for hire
  • Garden centres and plant nurseries
  • Veterinary surgeries and pet shops
  • Agricultural supplies shops
  • Convenience stores, corner shops and newsagents
  • Off-licences and licensed shops selling alcohol, including those within breweries
  • Laundrettes and dry cleaners
  • Post offices
  • Taxi or vehicle hire businesses
  • Car repair and MOT services
  • Car parks
  • Banks, building societies, short-term loan providers, credit unions, savings clubs, cash points, currency exchange offices, businesses for the transmission of money, and businesses which cash cheques.
  • Storage and distribution facilities, including delivery drop off or collection points where they are on the premises of any of the above businesses
  • Public toilets
  • Shopping centres may stay open but only units of the types listed above may trade

Paul Johnston

I'm Paul Johnston, owner of Bourne Accountancy, based in Caterham Surrey, offering a broad range of accountancy and specialist tax services to businesses and personal clients. My philosophy is always to do my utmost to provide friendly, courteous and efficient service.

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