How factoring offers bad debt protection as an alternative to credit insurance.

With an uncertain economic climate and insolvencies rising by 10%  more and more businesses are using Trade Credit Insurance to protect themselves against the failure of one or more of their customers.

Factors and Discounters provide an alternative to credit insurance by offering non-recourse arrangements, where for approved customers the risk of any loss is assumed by the Factor.

The key difference is that for a fee of on average between 0.2% -0.3% of turnover you will receive 100% cover and invaluable advise about the credit worthiness of your customers.

Most invoice finance providers can tailor a facility to suit your requirements and have an experienced Underwriting Team covering all sectors and industries.

As a client you will be allocated a dedicated Credit Analyst who will assess your customers and keep you informed about any changes in their financial performance.

With a simple charge levied against invoices factored there are no fees for individual credit applications or Insurance Premium Tax.

Unlike credit insurance you will also receive free litigation on approved debts and for Factoring Clients they guarantee payment of approved debts 120 days from due date, rather than having to get involved in protracted litigation

If you would like more information about how this service can provide your company with peace of mind then contact us TODAY