Choose from individual customers or entire sales ledger
Mitigate the risks of non-payment from customers
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Bad debt protection is protection that you can put in place to help protect your business against the financial impact of either a non-payment on the part of a customer or even a customer insolvency. The provider will offer a bad debt protection limit in respect of each of your customers. You can choose to protect your entire sales ledger or choose selected customers only. The selected provider will then cover up to 100% of any debt that may be outstanding, after VAT, provided that the debt in question is in excess of £500. The good news for businesses in today’s global market is that providers can offer cover in respect of bad debt collection that cover both UK and Export customers, providing great peace of mind for customers in an increasingly uncertain economic climate.
Unfortunately, even when you think that you know your customers well, circumstances can change. New management, problems with suppliers, financial issues with their own customers all have the potential to lead to problems that may mean they are not able to pay you. At Able Commercial Finance, we can help you to find the level of cover that is most suited to your requirements.
The benefits of bad debt protection
When you offer your customers a line of credit you are in fact lending them your own money; this is just how business works. Bad debt protection is there to protect any business in the unfortunate event that, at some point, a customer is unable to pay you. This in turn might make it difficult for you to pay someone else, so it is important to mitigate these risks in order to continue trading in a profitable manner.
Bad debt protection can usually be put into place quickly; sometimes within 24 hours and debts can also be backdated if necessary. At Able, we can help you access bad debt protection in order to protect your cash flow and minimise the risk of non-payment.
It’s suitable for businesses in all industry sectors, from property to finance to health care.
This type of protection can help secure your cash flow; thereby safeguarding your business from the potential losses that might occur in the unfortunate event that a customer is unable to pay. This means that you will still receive payment for your hard-earned sales in the event of an unfortunate financial issue arising with your customer.
Allows your confidence as a business to grow; this means that you can take on new orders secure in the knowledge that any payments are secure. This, in turn, will allow you to develop a customer base that is more profitable to your business.
You can carry out business on your own terms and you can choose whether you would like to protect all your customers or just certain customers. Again this will offer you peace of mind, particularly when it comes to taking on new customers.
As a business, it is vital to know that your cash flow will not be affected until such time that either your customer pays you or that any Bad Debt Protection claim you need to pursue is settled.
With bad debt protection, you can be assured of speedy payments. There is no lengthy claims process that you will be required to go through which could ordinarily have a significant impact on your cash flow situation.
