Thousands of UK businesses fail each year and although no business likes to think that their own customers will fail, it's a fact of life that every day companies go into formal administration.
In a time where banks and even governments are becoming insolvent, the risk of overlooking a delayed payment made by a previously prompt paying customer should not be taken.
Balancing you and your customer’s needs
Sadly, your needs are not wholly compatible with you customer’s. You may want your customer to pay upfront for invoices and they will want to delay payment for as long as possible, and the longer the invoice terms, the greater the risk to you of non payment.
How do you manage those conflicting needs?
Invoice finance solutions such as factoring or discounting will advance up to 90% of the value of your invoices, but if the customer fails to pay, that advance needs to be addressed, and for this eventuality, Bad Debt Protection is the solution.