Bad Debt Protection

Although no business likes to think about it, it's a fact of life that every day, companies go into formal insolvency. As long as you have taken out our Invoice Discounting or Factoring service, you will have the option to take out bad debt protection as well to ensure that you don't suffer as a result.

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 and you do not have BDP in place, 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 customer.

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.

Reducing the risks

Our services - invoice discounting and factoring include built-in credit limit analysis for all your customers. This simple step can often help to reduce the risk of bad debts in the first place.

See our lending guides for more information on how to obtain funding.

Security may be required. Product fees may apply.