Companies that are suffering from a reduction in credit insurance due to the UK's economic conditions will be able to purchase six month of top-up cover in a new scheme.
The Department for Business, Enterprise and Regulatory Reform has now begun the idea that was set out in the latest Budget, with specific help given to those in supply chains.
Running until December 31st 2009, the scheme allows suppliers to purchase government backed insurance to restore cover to the original level or double the amount they are able to obtain from the private sector up to the value of £1 million.
Business secretary Lord Mandelson said: "The scheme is a targeted transitional measure to help companies secure the cashflow they need to restore confidence throughout the supply chain.
"Risk is shared between government and the private sector striking the right balance between supporting businesses and protecting taxpayers' money."
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