CALL US TODAY
Manchester 0161 980 0577
London 020 3301 4540
Menu

Bad debt protection

Protect your business against bad debt

Key features

bad debt protectionBad Debt Protection

Bad debt protection insures your ledger in the event of a customer’s insolvency or protracted non payment. As a business you protect your assets; offices, plant and machinery, computers, or company vehicles. However, your biggest asset, your debtor book, is unprotected.

Not all finance companies provide bad debt protection in the same way therefore it is important that an insurance product is best suited to your needs

There are three main types of bad debt protection products. As to which one is the most suitable will depend on factors such as turnover and quality of your customers

Stand Alone.

Bad Debt Protection is a way of insuring your ledger against insolvency. Traditionally this is bolted on to a factoring or invoice finance facility however a standalone facility provided by a specialist insurance provider can be cheaper and provide superior cover. Clients can also choose which debtors they want to insure, and only pay the cost of insurance as and when they fund invoices against that debtor.   Insurance can be provided for international trade as well as domestic

Non-Recourse Factoring

Non Recourse factoring provides businesses with a cash flow finance solution along with the added value of bad debt protection. Factoring provides an immediate injection of cash into the business and will provide a source of funding that will grow with your business. Bad debt protection provides peace of mind that you will get paid in the event of a customers’ insolvency / inability to pay. Factoring also can save valuable management time by chasing and collecting outstanding invoices on your behalf.

Non-Recourse Invoice Finance

Similar to other invoice discounting solutions, non-recourse invoice discounting releases cash against your invoices within 24 hours of issue, giving you access to working capital required for day-to-day activities and business expansion.

What makes non-recourse invoice discounting different from other invoice discounting solutions is that the invoice finance company additionally provides bad debt protection to safeguard your business against the risk of insolvency, and even in instances late payment of debts.

For a free without obligation quote, contact XL Business Finance today.


How we have helped our clients

Can secure more orders but need to hold more stock.

A client that we have funded vehicles before approached us for a term loan to buy more stock. They are a re seller of mattresses. They have an opportunity to


Far better margins if we buy direct from abroad

We have a client who is a re-seller in the plumbing sector. For years they have bought goods from UK manufacturers but they have the option to buy the same


Read more case studies
We Love A Challenge

Other products to consider

Invoice FinanceInvoice Finance

  • Speeds up working capital cycle.
  • Optional bad debt protection.
  • Improves cash flow.
  • Grows with your business.

factoringFactoring

  • Improves cash flow.
  • Revolving credit that grows with your business.
  • Improved credit control.
  • Increased sales.

confidential invoice factoringConfidential Invoice Discounting

  • Improves cash flow.
  • Confidential - customers have no knowledge of outsourcing.
  • Flexible terms that grow with your business.
  • Competitive packages and rates.

Business LoansBusiness Loans

  • Flexible.
  • Fast decisions.
  • Independent from your bank.
  • For any purpose.

© XL BUSINESS FINANCE LTD

Sovereign House,
Stockport Road,
Cheadle,
Cheshire SK8 2EA

How to make a complaint | Privacy Policy

Manchester
0161 980 0577

London
020 3301 4540

XL Business Finance Limited are authorised and regulated by the Financial Conduct Authority FRN 718737
×

Get A Quote

Get in touch by filling in the form below. One of our finance experts will get back to you as soon as possible.





    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.