Bad Debt Protection
It’s business as usual with Bad Debt Protection
Bad Debt Protection, alongside Receivables Finance, 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 transition period looking likely to end without a deal, companies should be ready for more capital to be tied up in stock and credit. Covid-19 triggered inventory build-ups across Europe, but fresh Brexit stockpiling both sides of the Channel to avoid customs congestion and tariffs might slow the unwinding and keep warehouses full.
While the headline rates remain low, some analysts are worried central bank injections of cash into Covid-hit economies, restrictions to supply chains, and massive government debt make inflation a risk for 2021. 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 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- Up to 30 day heads up if a credit limit is withdrawn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