Bad Debt Protection
It’s business as usual with Bad Debt Protection
Bad Debt Protection, alongside our Receivables Finance offering (Invoice Discounting or Factoring), can offer peace of mind in the knowledge that your business is safeguarded against the risk of late and non-payments. It’s available to businesses supplying goods or services on credit terms - minimising the impact of customer insolvencies or protracted default on your business and providing up to 100% on all credit approved debt – subject to first loss.
Keeping your business going, looking for new opportunities to diversify into ‘the new normal’ and managing cashflow are all priorities. But keep an eye on the medium term too.
What’s on the horizon?
Brexit cash congestion
With the UK’s EU-exit we have seen an increase in clients needing to increase stock levels, companies may need access to more capital to build up stock and/or extend credit terms. Covid-19 triggered inventory build-ups across Europe both sides of the Channel to avoid customs congestion and tariffs might slow the trade cycle and keep warehouses full.
While the headline rates have been low, some analysts are worried central bank injections of cash into Covid-hit economies, restrictions to supply chains, and massive government debt make further inflation a risk for 2022 and beyond. In the British Chambers of Commerce summer survey, the only KPI moving up is prices – everything else (sales, investment, cashflow, confidence) is down.
Look for reforms
Government schemes across Europe have supported many businesses, but most governments are progressing long term plans to support a business bounce back. Look for changes to regulations – the Finance & Leasing Association (FLA) in the UK, for example, wants to see changes to investment tax breaks to boost business growth and new liquidity rules to support additional lending.
Protect your business from the unexpected
Bad Debt Protection isn’t a one size fits all. We use the insight available to us from the wider economic environment to evaluate credit worthiness. Through our Client Portal you can manage cover easily – getting visibility into customer credit worthiness and credit limit requests with our straight through processing.
We take the time to understand your current and future business needs, offering Bad Debt Protection alongside Receivables Finance as a tailored solution.
- No charge for credit limit requests
- Up to 30 day heads up if a credit limit is withdrawn
- No maximum claim limit
- No fee for individual claims
- No insurance premium tax
- Improves your credit worthiness
- Access to cross-border expertise in most markets
- Cost based on annual turnover
Do you have a question?
We would love to be your financial wingman.