Although no business likes to think about it, it’s a fact of life that every day, companies go into formal insolvency.
In the case where one of these companies is a customer of yours, it can prove extremely difficult to recover what you are owed – or indeed recover anything at all. If your customer fails to pay, you will have to repay the funds we have provided against their outstanding invoices.
For larger businesses this may not be a problem. But for many smaller companies, even a relatively minor cash flow crisis could prove to be a major worry.
This is where bad debt protection steps in - to protect your business from the formal insolvency of a debtor.
How bad debt protection works
Designed to complement your Invoice Finance agreement, Bad Debt Protection is an affordable solution that mitigates the impact of bad debt caused by the formal insolvency of a customer, giving you certainty of payment when things go wrong.
The service can put you ahead of your competitors, allowing you to take on more business and grow with confidence without the worry of bad debt if any of your customers go into formal insolvency.
Reducing the risks
Our services – invoice discounting and factoring include built-in credit reference checks and credit limit analysis for all your customers. This simple step can often avoid bad debts in the first place.