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Bad debts can have a crippling effect on a new or expanding
business. Bad debt protection insures against a customer failing
to pay, or worse, becoming insolvent. It can cover you for 100%
of the amount owed with the cost based on a percentage of the
value of your book debts.
What
is the 100% bad debt protection service?
An added value service for invoice finance clients, this offers
a ‘without-recourse’
option, meaning your debts are insured if a customer goes
bust or fails to pay.
Why is 100% bad debt protection important?
Young businesses don’t tend to have huge cash reserves
or ‘fat’, so protection can
be invaluable. Customers’ credit worthiness is checked,
helping you make
informed decisions on who to take orders from. If a major
debtor went bust or
didn’t pay up and you lacked protection, your business
could fail totally.
Why work with us?
We can arrange for the entire value
of your invoices to be insured, whereas other
players in the market may offer less. Around 30% of clients
use this service, for which businesses are charged 0.3% of
turnover, although where
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Allows more accurate financial forecasting by giving you
the knowledge that your sales forecast will not be affected
by unforeseen bad debts |
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Peace of mind
- if a customer failed to pay or became insolvent, the outstanding
debts to your business would still be settled |
What is invoice discounting?
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Bad
debt protection insurance
