Bad Debt Protection - Non Recourse - Credit Protection
We can introduce you to a non recourse financier that will provide you with bad debt protection which can also be know as non recourse or a protected facility.
Non Recourse Bad Debt Protection
Non recourse means that your business is protected against the risk of customers not paying due to insolvency or protracted default (extended period of non-payment).
The financier will allocate credit limits for new customers which means that you can trade with them in the confidence that you won't suffer from a bad debt. Bad debt protection can be provided independently (on a stand-alone basis) or in addition to either factoring, invoice discounting or export finance.
In some cases funding is linked to the credit limits but we can introduce you to providers where that is not the case and even providers that offer overpayment facilities.
The Cost of Bad Debt Protection
As an example, a business turnining over £1m per annum might expect to pay an additional premium of 0.35% of turnover (+ VAT if with factoring) for bad debt protection. The costs will vary and we would need to discuss your individual circumstances in order to give you a firm quotation.
Further Information & Resources
For more information about Factoring click here
For more information about Invoice Discounting click here
For more information about Export Finance click here
