Business Protection

Each year, thousands of businesses face insolvency, and although no one likes to think that their own customers could go bankrupt, it’s a risk every company faces. With economic uncertainty affecting businesses globally, overlooking a delayed payment from a previously reliable customer could lead to financial trouble.

Balancing Your Needs with Your Customers’ Needs

Your financial needs often conflict with those of your customers. While you may want upfront payment, your customers will likely seek to delay payments for as long as possible. The longer the payment terms, the higher your risk of non-payment.

Managing the Risk

Invoice finance solutions like Factoring or Invoice Discounting can advance up to 90% of the invoice value. However, if the customer fails to pay, that advance becomes a liability. Bad Debt Protection is designed to safeguard your business from this risk.

Non-Recourse Factoring

After investing time, money, and effort into growing your business, the last thing you want is for bad debts to undo your hard work. Non-Recourse Factoring, combined with Bad Debt Protection, provides up to 100% coverage against potential future bad debts.

Will Bad Debt Affect My Business?

The risk of bad debt is ever-present, especially in times of economic uncertainty. Even stable companies can face insolvency. For businesses in Australia and beyond, exposure to bad debts is a serious concern.

How Does Bad Debt Protection Work?

Bad Debt Protection works in tandem with your Invoice Factoring or Invoice Discounting facility. A specialised credit management team works alongside your business, conducting credit checks on your customers and providing insurance cover on invoices up to a predetermined limit. In many cases, up to 100% of the invoice value is covered, protecting you from the financial impact of a customer defaulting.

With Non-Recourse Factoring, your finance provider takes responsibility for collecting from your customers. If they fail to recover the debt, they will have no recourse to you—hence the term “Non-Recourse” Factoring.

Benefits of Bad Debt Protection and Non-Recourse Factoring:

Up to 100% protection against bad debts.
Credit checks on both new and existing customers, helping you build a stable and reliable client base.
Typically higher credit limits for approved customers, unlocking more cash flow.
Fast claims process with minimal paperwork.
Also available for export-related activities.
Provides peace of mind and financial security.

Bad Debt Protection is highly recommended in challenging economic times, and most businesses opt for it, enjoying the credit management expertise that comes with the protection.

Bad Debt Protection

Bad Debt Protection Complements Invoice Factoring or Invoice Discounting facilities, offering coverage of up to 100% of future bad debts. In today’s economic climate, where even governments and banks face insolvency, the risk of a previously reliable customer defaulting should not be overlooked.

How Does It Work?

Bad Debt Protection is an affordable solution that shields your business from the formal insolvency of a customer. Regular late payments are typically managed by your factoring provider, but when a customer becomes insolvent, Bad Debt Protection ensures you still get paid.

Certainty in Uncertain Times

Bad Debt Protection allows your business to operate confidently, knowing that even in the worst-case scenario, your invoices are covered. This peace of mind lets you focus on growing your business without worrying about bad debts or poor cash flow—two of the biggest threats to any company.

Credit Insurance

In today’s rapidly changing world, businesses need to protect themselves against the risk of customer insolvency. Credit Insurance is an essential tool that provides a safety net against customers going bankrupt. It can be offered as a standalone policy or as part of an Invoice Finance package.

At Factoring Finance, we offer a wide range of Credit Insurance policies that can be customised to meet the specific needs of your business. Whether you are a start-up or a large multinational, we can tailor a policy to fit your risk management requirements.

Credit Insurance Can Be Tailored To:

Offer a level of protection suited to your business.
Cover one country or multiple regions depending on where you trade.
Enhance your existing internal or outsourced credit management processes.
Work in conjunction with an Invoice Finance package, such as Factoring or Invoice Discounting.
Minimise exposure to political risk and economic instability.
Meet your individual trading needs and requirements.

For more information or a no-obligation quotation, contact us directly or explore further details on our website. We can help safeguard your business against insolvency or customer default.