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How to protect against bad debt

Each year, businesses lose thousands of pounds because of poor payment practices. Payment delays present a real business risk, placing pressure on cashflow and restricting your capacity to grow. Even when a business is thriving, it can take just a few unpaid invoices to create significant issues.

We can offer non-recourse Bad Debt Protection and take on your bad debt risk. This provides reassurance, knowing you’ll receive payment and safeguard your cashflow if your customers are unable to make payment or become insolvent. 

Carpenter

Is my business suitable?

Your business could be suitable for Bad Debt Protection if you:

  • Yes: have had previous experience of customer bad debt 
  • Yes: want to minimise the risk of non-payment from customers
  • Yes: want to protect your cashflow
  • Yes: have some customers that represent a large percentage of your sales
  • Yes: have an annual turnover of more than £x,000

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Bad Debt Protection

Bad Debt Protection features:

  • We take on your bad debt risk
  • Protects up to 90% of your bad debts
  • Protection can be provided for customers with balances over £500
  • Can protect against all of your customers or can be used just for selected customers
  • We credit check all of your existing customers and any prospective customers
  • Additional funding may be available against customers who represent a large proportion of your sales or where longer payment terms are offered
  • We take care of all the administration, so you can free up your time

Bad Debt Protection benefits:

  • Speed: you can have protection within 24 hours
  • Security: we protect your business when your customers do not pay
  • Scope: we can protect up to 90% of your bad debts
  • Choice: you can decide which customers need to be covered
  • Prevention: you can monitor your customers and act before they become a bad debt
  • Flexibility: we can back date protection on all debts by 60 days
  • Personal: we get to know our clients who value our relationship-based approach and our Service Promise

Warehouse Individual 4

How Bad Debt Protection can help your business

Bad debt affects a large number of businesses in the UK, irrespective of size or sector. If you have experienced bad debt, or a few customers represent a large percentage of your total sales, you can protect your finances from non-payment with Bad Debt Protection, also known as ‘non-recourse’.

This gives you the confidence of knowing you will receive payment for the work you’ve done or products you’ve sold.

UK SME’s have written off £20,403 in bad debt over the past 12 months. Bibby Financial Service Confidence Tracker
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