Government to provide credit insurance guarantee


The government has stepped in to support businesses who have seen their credit insurance cover reduced or premiums increase in the wake of the Coronavirus pandemic.

Credit insurance is a vital tool for thousands of UK businesses, who rely on it to protect their cash flow against the risk of late payment and debtor insolvency. With the risk of both of these increasing as the impact of the crisis continues to be felt, many businesses have seen their level of cover reduced, withdrawn or premiums increasing.

After lobbying from the Association of British Insurers and UK Finance, the Economic Secretary to the Treasury, John Glen, yesterday announced the government will temporarily guarantee business-to-business transactions currently supported by credit insurance.

How will it work?

Although full details are still to be announced, it will be delivered through a temporary reinsurance agreement with insurers currently operating in the market and is hoped to be in place by the end of May.

The guarantee will cover domestic and export trading activity – provisionally until the end of 2020 – providing businesses with much-needed confidence that they will be protected if a customer defaults on payment.

As of April 2020, over £171 billion of business activity was insured, covering transactions between around 13,000 suppliers and 650,000 buyers.

Credit insurance policies can be provided as a standalone policy or through non-recourse invoice finance facilities, which additionally see the lender advance up to 90% of the value of invoices within 24 hours of being raised to provide vital cash flow support.

As well as cash flow protection, credit insurance gives businesses the confidence to continue trading with certain customers and even improve access to funding under certain products.

Read more about the growing value of credit insurance here, how it works and the different options that are available.


Some of the funders we work with

  • Regency Factors
  • Investec
  • Team Factors
  • Peak Cashflow
  • Royal Bank of Scotland
  • Giant
  • Aldermore Invoice Finance
  • eCapital Commercial Finance
  • Santander Corporate & Commercial
  • Clear Factor
  • Nationwide Finance
  • Castlebridge
  • Cynergy Business Finance
  • Kriya
  • Praetura Invoice Finance
  • Leumi ABL
  • Skipton Business Finance
  • Davenham Asset Finance
  • Accelerated Payments
  • Metro Bank SME Finance
  • Haydock Finance Ltd
  • Time Finance
  • Sonovate
  • Blazehill Capital
  • Optimum Finance
  • Tradeplus24
  • Ultimate Finance Group
  • Pulse Cashflow Finance
  • Roma Finance
  • Davenham Trade Finance
  • IGF Invoice Finance
  • 4Syte
  • Merchant Money
  • Woodsford Tradebridge
  • Barclays
  • Lloyds Bank Commercial Finance
  • Close Brothers Invoice Finance
  • MaxCap
  • PNC Business Credit
  • InvoCap
  • Berkeley Trade Finance Ltd
  • ABN AMRO Commercial Finance
  • Partnership Invoice Finance

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We are a credit broker and not a lender and offer credit facilities from a panel of lenders