BAD DEBT PROTECTION

Safeguard your business with debt protection

Bad debts are a risk to all businesses at anytime. In times of economic difficulties they become a greater threat.

Winning new business is important but what happens if the new company can’t pay or goes into liquidation? What impact would it have on your business if one of your largest customers went into liquidation?

A bad debt of say £5000 could create a loss that would require a company to find £50,000 of additional sales just to stand still.

Bad debt protection, sometimes called Non Recourse Factoring, is a cost effective solution to bad debts for both invoice factoring and invoice discounting.

How it works

Your invoice finance company will credit check all your existing customers and all new customers you deal with. They will also alert you to any changes in a customer’s credit rating so you can make up to date decisions on an ongoing basis regarding who you trade with and how you trade with them.

Depending on the particular invoice finance company they will either inform you of the cover available for each invoice raised or for each customer account. The cover can be up to 100% of the invoice value.

Once covered, claims procedures are generally quick, effective and hassle free.

What’s the cost?

Costs vary depending on circumstances such as business size and industry sector but typically fall between 0.10% and 0.85% of turnover.

Our customer service guarantee

Regardless of the service we provide we always aim to provide the highest levels of quality and customer care.

Our customer service guarantee includes the following;

• We provide industry leading levels of customer service, guaranteed.
• Initial consultations and assessments are free
• You’ll deal with an experienced business specialist who will be able to advise on all aspects of your funding solution.
• We match the terms and conditions of the services you require to your specific business requirements.
• You’ll be assigned a senior account manager whom you will have access to at all times.
• We take the time to explain the lenders terms and conditions so you always know where you stand.
• We provide practical no nonsense advice.
• We won’t waste your time because quite frankly we don’t want to waste ours.
• We’re highly focussed on successful outcomes for our customers.
• We guarantee to add value in all the services we provide.
• We provide value for money.
• Our aim is to provide a long term, mutually rewarding, business relationship.

Protecting your business against bad debts

Invoice finance and its associated services are now used by ever increasing numbers of small and medium sized businesses throughout the UK as a real alternative to bank loans and overdrafts.

In addition to providing some of the most effective working capital finance, invoice finance lenders offer a range of additional key services including bad debt protection.

More and more businesses are now considering bad debt protection as an essential element in their overall funding package to alert them to the potential credit risks of both new and existing customers.

We do not charge for initial consultations and financial assessments so you can comfortably discuss your requirements before deciding how to proceed with your funding options including considerations on bad debt protection.

Contact us

To find out how to secure the best finance for your business email us here and one of our business specialists will call you back at a time to suit you, or if you want to speak to someone now, call us on 0845 459 7504.