Towergate Risk Solutions launches pioneering credit insurance acility to support small businesses

Towergate Risk Solutions today announces the launch of a new affordable Credit Insurance scheme specifically designed to address the cash flow, credit and investment needs of small and medium sized businesses (SMEs). The product is unique to Towergate and is supported by leading credit insurer Atradius.

The new Credit Insurance scheme provides protection to SMEs which trade on credit terms with other businesses and provides cover against losses arising from the non payment by customers. For the first time SMEs will be able to acquire affordable credit insurance in the region of £1800. To date policies have been beyond the reach of many SMEs typically costing £3,000 and above

Research earlier this year by the Forum of Private Business (FPB) found that the total amount of overdue payments among a sample of SME's increased by £1 million in February 2010 to £16.6 million. The research also revealed that small businesses have an average of £47,000 tied up by late payments. Some 24 per cent of respondents also said they will not be in a position to invest in their businesses over the coming months.

The new facility comes at a time when the first gathering of David Cameron’s business advisory group comprising of the Federation of Small Businesses, British Chambers of Commerce and leading business figures used the first Summit to highlight the need for credit insurance to support British business.

Stephen Alambritis, Chief Spokesman, Federation of Small Businesses, said, “Towergate and the FSB are playing their part as a key supporter of local small businesses. In these unprecedented times, the FSB believes 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.”

Jonathan Walker, Managing Director of Towergate Risk Solutions said, “We believe this new facility will provide local businesses affordable credit insurance at a time when they need it most. With the economic outlook remaining uncertain, SME’s now have the opportunity to protect against the non payment by customers which could be the difference between staying in business and going under”.

For more information please contact 0845 671 8008 or credit@towergate.co.uk


Media Contacts

Russell O'Connor

Group Communications Manager

Towergate

Mobile: 07760 282586

Email: Russell.o'connor@towergate.co.uk