What Is Protection Against Bad Debt?

Bad Debt Protection, in conjunction with our Receivables Finance solution (Invoice Discounting or Factoring), may provide peace of mind in knowing that your company is protected against the danger of late and non-payments. It is offered to firms who sell products or services on credit terms, reducing the impact of client insolvency or prolonged default on your business and offering up to 100% on all credit authorized debt – subject to first loss.

Priorities include keeping your firm running, searching for fresh possibilities to diversify into “the new normal,” and managing finance. But keep an eye out for the medium term as well.

What’s In Store For The Future?

We have witnessed an increase in businesses seeking to boost stock levels as a result of the Australian dollars withdrawal; firms may require additional finance to build up stock and/or prolong credit terms. Covid-19 generated inventory build-ups on both sides of the Channel to avoid customs bottlenecks, and taxes may impede the trade cycle and keep warehouses crowded.

Swelling Inflation?

While headline rates have been modest, some analysts are concerned that central bank liquidity infusions into Covid-hit nations, supply chain limitations, and high government debt pose a danger of increased inflation in 2022 and beyond.

Look For Changes.

Many firms have been helped by government programmes across Australia, but most governments are working on long-term strategies to help businesses recover.

Protect Your Company Against The Unexpected.

Bad Debt Protection is not a one-size-fits-all solution. We assess creditworthiness using information gleaned from the broader economic context. With our straight-through processing, you can quickly monitor insurance through our Client Portal, gaining access to customer creditworthiness and credit limit requests.

Bad Debt Protection Benefits

  • You minimize the risk of bad debt.
  • Protects up to 100% of bad debts
  • Can be applied to all or a subset of consumers
  • Credit checks are performed on all existing and potential clients.
  • The supplier handles all administration.
  • Significant cost and time savings in the case of customer insolvency

4 Ways To Protect Your Company From Customer Insolvency Or Nonpayment

  • Establish a strict credit check procedure for new clients.
  • After researching your clients, set suitable credit limits based on their risk profiles.
  • If you use invoice finance to enhance your working capital cycle, be sure you include a bad-debt bolt-on loan in case a client fails to pay.
  • Consider credit insurance if you operate in a risky field or are concerned about a specific client.

To Learn More, Please Contact Us

We take the time to understand your existing and future company needs, and we provide Bad Debt Protection in addition to Receivables Finance as a customized solution.

  • Credit limit requests are free of charge.
  • Up to a 30-day notice if a credit limit is withdrawn
  • There is no claim limit.
  • There is no cost for individual claims.
  • No premium tax on insurance
  • Increases your creditworthiness
  • Access to cross-border knowledge in the majority of markets
  • Cost is determined by annual turnover. Cost is determined by annual turnover.
By Admin

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