Bad Debt Protection: Protect your cash flow and give yourself peace of mind
You’ve worked hard to build up a strong customer base, but sometimes for reasons out of your control some of these businesses will fail.
With Bad Debt Protection up to 90% of this loss is covered, minus the excess, minimising the impact of a failed customer on your business. It provides you with the peace of mind and security needed to grow your business, safe in the knowledge you will not be left out of pocket should one of your new customers not be a success.
Why you may need Bad Debt Protection
Over the the course of a year the average company will lose more than 3 of its active customers because of financial distress, insolvency, administration or receivership.
- 76% of the time if one of your customers goes into liquidation you will get nothing back
- 7.5p in the £1 is the average amount recovered without Bad Debt Protection
- A £1.5m turnover business earning a 5% margin would have to increase its turnover by 30% to recoup a bad debt of as little as £22,500
Benefits of a Bad Debt Protection facility
Bad Debt Protection with Hitachi Capital Invoice Finance
At Hitachi Capital Invoice Finance we don’t want to over complicate things. We want everything to do with your business funding to be as simple and straightforward as possible. That’s why our specialist Bad Debt Protection team will be with you every step of the way.
- You can add the Bad Debt Protection to your invoice finance facility at any time and we’ll work with you to help you understand where the potential for bad debt lies within your debtor book. We’ll then look at the appropriate level of cover for your business and put this in place.
- Through managing your invoice finance arrangement on a daily basis, our client managers have a thorough knowledge of your debtor book, so we can spot a change in your customers behaviour and submit a claim if they become insolvent. We’ll then manage the entire claims process for you, and notify you once it is all resolved. All this for just a small percentage of your service fee.
Get in touch
For an informal discussion in regards to your cash flow needs please contact us on
0808 256 6442