Budget 2009: Credit insurance scheme - good but not good enough, say small firms

A new scheme to enable them to purchase 'top-up'trade credit insurance from the government if credit limits on their UK customers are reduced has received a cool reception from UK business commentators.

The scheme, announced in conjunction with the chancellor's 2009 budget speech, will provide up to £5 billion of extra insurance as part of the Working Capital Scheme to help mitigate cash flow problems.

Trade credit insurance protects suppliers who sell goods on credit to companies, such as retailers, against the risk they will not get paid.

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