How does bad debt protection work?
When you've worked long hours, day after day, the last thing you want is to worry about is a bad debt undoing it all in one unfair swoop.
Cashflow Acceleration 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 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.
If you don't want finance or collections support, we can introduce you to a specialist organisation that can provide you with credit insurance.
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% non recourse cover we are equally able to assist you.
Who can help?
Cashflow Acceleration Ltd, an East Sussex based company, offer a UK wide free independent quotation search service for factoring.
In many cases they have saved clients at least 33% of the cost of their existing or quoted invoice finance facility.
Call 01892 784183 today for a FREE independent quotation search.
