Debtor Protection
Debtor protection protects your business against the insolvency risk or non-payment of invoices by your customers. In short, it provides you with peace of mind.
If, for example, a major customer becomes insolvent, the financial consequences to your business could be catastrophic. Debtor protection ensures that your business will survive.
How it works
We will provide you with both a quote for debtor protection and an initial assessment of your top ten customers free of charge. If you are happy with our quotation, you will be provided with a link to our on-line system where you can request limits on your customers and manage the facility. The interactive system allows communication with limit underwriters. You will need to feed back information on overdue debts (standard terms + 60 days) via the on-line system. This is a very simple procedure, which should take you no more than 15 minutes per month.
In summary debtor protection offers:
- Balance sheet protection
- Protects your largest asset - your accounts receivable
- Helps spot a potential credit risk problem before it becomes a bad debt
- Allows bad debt provisions to be reduced
Why consider debtor protection?
- Because you effectively lend your customers your money, unsecured
- Because you should protect one of your largest assets - what people owe you
- One bad debt can wipe out years of work. With a 10% margin, a £5,000 bad debt gives you a loss that requires £50,000 of turnover just to stand still.
Cover provided
The policy covers
- Insolvency. Where a company goes out of business. Insolvency payments will normally be made within 30 days
- Protracted default. Where a company fails to pay invoices. A protracted default claim may be submitted when invoices become overdue by more than 180 days
- Take-on debt can also be covered
We cover not only UK debtors, but also many overseas countries including: Western Europe (Euro countries), USA, Canada, Asia, the Pacific Rim and many other countries.
Competitive charges
We offer extremely competitive rates, which will be adjusted to size and risk, but will typically range from 0.15% to 0.75% of your annual turnover. There is no minimum premium rate.
