Case Study Cheap Bad Debt Protection for Small Businesses With Invoice Finance

As trading conditions have become more difficult there has been an increase in the number of businesses that are suffering customer bad debts.  It is possible to insure your business against the risk of customers failing (credit insurance) whilst owing you money, but it can be very expensive.

Cheap Bad Debt Protection 

We have just helped a client, a small manufacturing business, to significantly reduce the cost of protecting their business against bad debts.  They were looking to both improve their cash flow with invoice finance and to protect themselves against the possibility of customers failing whilst owing them money and had been looking at a factoring facility with a separate credit insurance policy. They had received service charge quotations between £8,000 and £9,500 per annum for a factoring facility with a separate credit insurance policy to provide the bad debt protection. 

We put them in touch with one of the providers that we deal with, who offer cheap facilities, and they were able to offer our client a combined invoice finance facility (known as non recourse) that would give the client a debt collection service, cash flow finance against their sales invoices and protection against bad debts.  All of this was provided for an annual service charge of just £4,200, 47% less than the lowest quote they had received elsewhere.

Can we help you?

If you would like to find out how cheap it would be to protect your business against the risk of customer bad debts complete our:

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