Bad Debt Protection
Protect Your Cash Flow and Gain Financial Insight with Trade Credit Insurance.
Trade Credit Insurance (TCI) offers a comprehensive solution, providing flexibility to select which debtors to insure and broader coverage for all insured receivables, including “Can’t Pay, Won’t Pay” scenarios. It also delivers proactive, privileged insights into your debtors’ financial health.
Debtors are more likely to pay promptly when they know invoices are insured, and TCI provides superior cover limits with full risk visibility. TCI is generally more cost-effective than bundling BDP with Invoice Finance.
With our strong relationships in the Trade Credit Insurance market, we secure highly competitive rates and deliver robust, flexible protection for your business. Feel free to contact us for a free, no-obligation Trade Credit Insurance quote.
Lenders are more inclined to lend to businesses that have bad debt protection in place due to the following reasons:
- Invoice finance confidence: Bad debt protection allows invoice finance lenders to lend up to your insured limits.
- Competitive edge: BDP boosts confidence to find new customers which can drive profits and financial performance.
- Risk reduction: Bad debt protection boosts creditworthiness, as it demonstrates proactive risk management to lenders.
- Cash flow stability: BDP helps to stabilise business cash flow by safeguarding against the impact of customer non-payment.
- Business continuity: Lenders have an interest in supporting businesses that can sustain operations and pay their debts.
What are the advantages of Bad Debt Protection?
Insurers pay when your customers Don’t
Bad debt protection insurance safeguards businesses against the risk of non-payment or insolvency of their customers. If a customer fails to pay due to bankruptcy, protracted default, or other covered reasons, the insurance policy covers the insured outstanding amount. This minimises the financial losses and ensures the business’s cash flow remains intact.
Insurers provide an early warning system
Bad debt protection insurance often includes credit assessment services. Insurance providers assess the creditworthiness of potential customers, helping businesses make informed decisions about extending credit. This enables businesses to mitigate the risk of bad debt by identifying customers with higher credit risks and adjusting credit terms accordingly.
More Confidence to Expand
With bad debt protection insurance, businesses can confidently expand their customer base and enter new markets. The insurance coverage provides a safety net, allowing businesses to offer credit terms to customers who may have otherwise been considered too risky. This can lead to increased sales opportunities and business growth.
Peace of Mind
Having bad debt protection insurance provides peace of mind to businesses, knowing that they are protected against potential losses resulting from customer non-payment. This allows business owners to focus on their core operations and growth strategies without constantly worrying about the financial impact of bad debt, including Can’t Pay Won’t Pay.
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