Non Recourse Factoring

When you have put in time, money and effort into growing your business the last thing you want to have on your mind is a bad debt/s undoing all in your hard work

Bad Debt Protection is a service which works in tandem with Invoice Factoring or Invoice Discounting facilities, and in doing so can cover up to 100% of any future bad debts.

Will Bad Debt affect me?

In 2009 there were 26,196 business failures, 489,000 companies dissolved with a further 71,000 companies placed into administration and 177,000 in the process of being removed. This resulted in the number of enterprises at Companies House at the start of 2009 at 2,583,000 falling by 389,000 to 2,194,700, by the end of 2009, which is a drop of more than 15% (or 1 in 7 of all business enterprises ceasing within that year).

It is no surprise then that the above figures reflect the fact that the UK ended its long running year on year increase to the number of enterprises registered in 2009. 2009 also saw Britain get labelled ‘Bad Debt Britain’ as 9 out of 10 UK companies recorded a rise in bad debt.

How does Bad Debt Protection work?

With Bad Debt Protection, you get an experienced credit management team working on your side. They will credit-check all of your existing customers and any prospective customers and  offer your business insurance cover on each invoice up to a level that the insurers feel is appropriate. In many cases up to 100% of the invoice value can be covered.

Bad Debt Protection is a cost-effective solution, ideal for working in tandem with Invoice Factoring or Invoice Discounting facilities for clients who want that added peace of mind and security in knowing that a bad debt isn’t going to undo all their hard work.

By having Non Recourse Factoring in place, it means that your finance provider will recover any prior approved/covered debts from your customers and have no recourse to you if they fail to pay, hence the term ’Non Recourse’ Factoring.

Benefits of Bad Debt Protection / Non Recourse Factoring:

*Up to 100% protection against future bad debts

*Credit advice and Customer Credit checks helping you to build a stable client base with credit terms appropriate to your customers’ credit status

*Credit checking on new customers

*Typically higher credit limits for your ‘approved and checked’ customers meaning you can unlock more value from them

*Fast Claim periods and minimal paperwork

*Also available on export activities and

*Peace of Mind

Bad Debt Protection is available to all of our Factoring and Invoice Discounting clients, and as a result of challenging times, most take it up, enjoying total peace of mind and the expert credit guidance that comes with it.

It can be impossible to predict which customers may bring you late payment problems, non payment problems and bad debt problems but one near certainty is that at some point it will happen.

The question is, how much will bad debt disrupt your business?

Alternatively, you can use can call/email us directly with your query through the contact us section.

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