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• 02 Jan

  6 Months Free Bad Debt Protection?

  Bad debt protection (BDP) has been a popular option as companies have seen a high number of recent failures, even amongst well-known household names. BDP protects you against up to 100% of the value of a customer bad debt, if the customer becomes insolvent (there may be a first loss clause amount).

  6 Months of Free Bad Debt Protection?

  One of our panel of invoice finance providers are currently able to offer our customers:

  • 6 months free bad debt protection

  as an introductory offer to new customers. This offer may be withdrawn without notice, and qualification criteria may apply. Debtor concentration levels must be less than 40% of the sales ledger, and export debts must account for less than 20% of all trade.

  Customer Insolvency Protection

  BDP means that you have credit limits set for each customer, and providing you stay within the credit limit (the maximum level of invoices outstanding to a debtor at any given time), you know you are protected against the risk of customer insolvency.

  Example Savings

  As an example, based on a customer seeking invoice finance, turning over just more than £1M, the expected cost of the bad debt protection element might be 0.25% (you will need to check the rate for your business). Therefore, the savings for that particular customer, over the 6 months of not paying the Credit Protection Element - CPE, could be as much as £1,375 - a significant amount.

  For more details please call Sean on 03330 113622.

  Other Discounts And Offers

  We have a variety of other offers and discounts that are available to our clients. At the time of writing these include service charge holidays and the removal of minimum fees for an initial period of time, short notice periods and initial trial periods - if you want to try an invoice finance service without being tied in. If you already use a receivables financing service, we may be able to find you a cost-saving. On average, over the last year, we have found customers substantial savings on the costs that they were quoted (or charged) elsewhere.

  By Glenn Blackman