Bad Debt Protection & Non Recourse Factoring
We can introduce you to a financier that will provide you with bad debt protection which can also be know as non recourse or a protected facility.
Non recourse factoring means that your business is protected against the risk of customers not paying due to insolvency or protracted default (extended period of non-payment).
How Bad Debt Protection Works
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.
If your debtor fails to pay, you will be credited up to 100% of the value of the outstanding invoices by the provider (subject to the terms and conditions of your particular arrangement).
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.
If you don't want finance or collections support, we can introduce you to a specialist organisation that can provide you with trade credit insurance. Trade credit insurance can also protect you against bad debts. It can be provided against all of your sales, on a whole turnover basis, or against specific customers. It can also be provided on a catastrophe basis so that you are only covered against significant losses. If you would prefer 100% cover we are equally able to assist you.
Watch the full length video explanation of factoring here.
For more information about Factoring click here
For more information about Invoice Discounting click here
For more information about Export Finance click here
