Towergate offers new trade credit insurance plan to SMEs

Towergate Partnership is preparing to offer trade credit insurance to firms that have previously had their cover cut.

The new scheme from the insurer’s underwriting arm is for small and medium-sized (SME) business with an annual turnover of less than £10m.

Trade credit insurers, especially the big three providers – Euler Hermes, Coface and Atradius – have faced criticism for pulling cover on small businesses.

Towergate said each firm would be assessed, regardless of whether they had previously had cover cut.

Amanda Blanc, chief executive of Towergate Risk Solutions, said the company was playing its part as a key supporter of local small businesses.

“In these unprecedented times we believe it is important to provide protection to local companies to secure the finance they need, not because of any failure in their business but due to the tougher credit conditions,” she said.

The government and the ABI are working on a state-backed trade credit insurance scheme, likely to be unveiled later this month.