Cash flow protection you can’t afford to go without

With insolvencies on the rise and businesses growing increasingly uncertain about the future, it is important to consider what impact bad debt could have on your company.

For many, a single bad debt could have significant consequences on the company’s ability to fulfil orders, pay suppliers and bills on time and even continue trading.

So what options do businesses have to protect themselves against these risks?

1. Seek a standalone credit insurance facility

Credit insurance safeguards a business’s cash flow against the threat of late payment or bad debt as a result of debtor insolvency or protracted default (non-payment after six months).

In the event an invoice becomes aged or a customer is subject to insolvency proceedings, those with credit insurance cover can make claims and get paid for any goods or services supplied, subject to a designated credit limit.

Facilities can be secured alongside existing funding facilities and cover selected customers or the entire sales ledger.

2. Incorporate bad debt protection into an existing invoice finance facility

For businesses already benefiting from an invoice finance facility, debtor protection is available as a bolt-on or an integral part of some facilities.

In addition to the added peace of mind this provides, having this shield of credit cover may help to increase the available level of funding and extend the period of availability.

Importantly, securing bad debt protection in this way can help to save up to 12% in Insurance Premium Tax, which has increased in recent times. It also tends to provide a higher level of cover – up to 100% of net sales.

How we can help

As an independent commercial finance broker that specialises in a wide range of finance and credit insurance products, we can help your business secure the facility that meets your requirements.

Whether you’re interested in credit insurance as a standalone product or would like to explore the possibility of incorporating bad debt protection into a new funding facility, our award-winning team would be pleased to help.

We can also review your existing finance arrangements and explore whether there could be something more suitable available to your business.

Why Hilton-Baird?

Call us on 0800 9774833 or request a call back to discuss your requirements with one of our award-winning Funding Consultants, or get an invoice finance quote using the tool below: