What is Bad Debt Protection?

Bad Debt Protection, also known as ‘BDP’, ‘Debtor Insurance’ or ‘Credit Insurance’ is commonly used alongside an invoice finance facility. It provides businesses with comfort that should a customer fail to pay, the loss will be insured, preventing the business from taking the hit.

 

The popularity of Bad Debt Protection alongside an invoice finance facility is mainly due to the additional risk that your business has borrowed against a debt that is then not paid, potentially creating cash flow problems at a later date. By protecting the businesses debtors with Bad Debt Protection, owners can have peace of mind that the debt will be covered by the insurance.

 

Some invoice finance providers can also offer Bad Debt Protection at an additional cost to an invoice finance facility, but you can also take out separate insurance policies to protect your business, even if you do not use invoice finance.

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Key Features

Protection for up to 100% of your bad debts

Have peace of mind in knowing that your business is insured against the threat of bad debts

 

Full debtor and selective debtor insurance options

You can either select particular debtors to insure, or have a blanket policy to cover all

 

Potential for huge savings

In the event of an insolvency of one of your customers, a bad debt protection policy could represent a huge saving

 

Informed Decisions

All current and new customers will be credit searched, allowing you to make better informed decisions when providing credit

How much does it cost?

The cost of this facility will depend on both the amount of protection you need, i.e. if all debtors, how much your debtor book is at any one time as well as the risk profile within your debtors.

 

The pricing is usually on an agreed percentage basis against your invoice values.

How Can We Help?

We have access to several Bad Debt Protection providers and can source a range of quotes tailored to your business to ensure you get the best cover and the best deal.

Speak to one of our experts today to get tailored quotes for your business.

Quick Enquire Now!

It's easy to get started with our quick apply form.

Make an enquiry by clicking the button on the right and we will contact you shortly to discuss your requirements