The chancellor will provide businesses with £5 billion in credit insurance, the Financial Times has reported.
Announcing the provision as part of his budget tomorrow (April 22nd), Alistair Darling will ensure that suppliers can obtain credit insurance in order to boost credit levels between businesses, the report added.
Supply chains are becoming an increasingly public part of a business' operations at present, with businesses in the automotive industry turning to the need to support one another in order to prevent a wider failure of the sector.
Applications for credit insurance will begin on May 1st this year and will end on December 1st. Insurance will not be granted to those companies which have seen their insurance levels withdrawn, as they appear too much of a risk, the Financial Times' source explained.
Instead, businesses which have had their insurance reduced will be eligible for government support.
Small or medium-sized businesses hoping to raise efficiency levels within their own supply chain may wish to outsource such projects to a supply chain management company which can apply its own wealth of knowledge to ensure efficiency is maximised.
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