The scheme allows a business to access Trade Credit Insurance where they may otherwise be unable to secure a facility, as the government is effectively underwriting a proportion of the risk.
This extension is welcome news, as the original reinsurance scheme, introduced in May, was only to run up until 31st December 2020.
Credit Insurance offers peace of mind to businesses who could be affected by the failure of a customer, something that is a particular worry to many during the pandemic. Credit insurance means that in the event of customer failure the outstanding invoices will be settled by the insurer.
Capital Corporate Finance (CCF) Founder and Managing Director, Carole Roe, comments, “The extension to this reinsurance scheme will come as a blessing to many businesses trading in these challenging times with the added worry about the effects that the failure of a customer could have on their own business. Many businesses are actually thriving during this pandemic, but credit insurance gives absolute peace of mind. Not every business has been able to secure credit insurance on competitive terms, but this scheme allows the insurer to take a more commercial view on risk, which means that more businesses can access this type of facility.”
Here at CCF we can arrange Trade Credit Insurance for your business, guiding you towards the facility most suited to your needs, be that one that covers your whole debtor book, or just selected customers if you prefer.
Another financial solution to ensure a robust cashflow is invoice finance - the UK’s most popular form of alternative finance. Advancing monies from issued invoices, the facility allows you to access up to 90% of each invoice’s value within 24hrs. The balance is then paid once the invoice is settled. This type of facility can be put in place quickly, usually within 1/2 weeks from our first conversation.
Here at CCF we have access to all UK lenders – for trade credit insurance, invoice finance and all major lending options. We are 100% independent which means we are not bound by targets, contracts or bonuses so we only arrange finance with providers that suit each business’s needs, not our own.
We do not charge you for our services, as we are remunerated by the provider, without any hidden costs or charges applied to your lending.
To see how little your SME business finance could cost you, and the benefits it will bring to your cashflow and working capital, contact Carole directly today on 07785 596053 or email firstname.lastname@example.org