Bad Debt Protection
What is Bad Debt Protection?
Bad Debt Protection works alongside your invoice finance facility to make sure you still get paid if your customers can’t settle their invoices. BDP protects your business against bad debts, allowing you to trade confidently with your customers, knowing that your cashflow is safe.
How does it work?
Speak to our team and choose the customers or invoices you wish to protect.
A small fee is applied, tailored to the level of cover you require.
Our team will review your bad debt protection request.
Once approved, you can begin protecting your cash flow and focus on running your business.
If your customer fails to pay, you’ll receive compensation for up to 90% of the invoice value.
What Types of Bad Debt Protection Are There?
Selective Bad Debt Protection:
Selective Bad Debt Protection allows you to choose which individual customers (debtors) you’d like to cover. This means you can apply protection only to those you feel present a higher risk or are particularly important to your cash flow. Cover is provided up to an agreed credit limit for each selected debtor, giving you flexibility and control over how you manage risk.
Whole Turnover Debtor Protection:
Whole Turnover Debtor Protection applies across your entire sales ledger, covering all your customers (debtors), subject to agreed credit limits. This provides broad protection against the risk of non-payment, helping to give you greater peace of mind and more predictable cash flow across your business.
Key Benefits
1. Protection
You can protect your cashflow from missing out on customer payments.
2. Mitigate Risk
You can reduce your exposure to risk if a small number of customers represent a large percentage of your sales ledger.
3. Flexible
You can pick and choose which customers need to be covered.
4. Preserving Relationships
It can help you maintain your commitments during customer financial hardships, safeguarding your relationships and reputation.
5. Growth opportunities
Armed with the assurance of bad debt protection, you can focus on your growth plans and investments without the looming fear of unpaid invoices.
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