Bad Debt Protection

Bad Debt Protection (BDP), is a way of protecting your company by ensuring that in any instance of non-payment at the fault of your customer, your company does not suffer the financial repercussion.

What is Bad Debt?

If your customer is unable to pay you the monies owed for the work, products or services provided, it is your company that faces the financial consequences. This is a ‘bad’ debt.

As well as your customer potentially facing insolvency, cases of bad debt disadvantage the owed company (you) due to the amount of work already carried out, and possibly paid for up front in the form of wages or materials, that will essentially go unpaid.

Bad Debt Protection with an umbrella over a piggy bank.

How can Bad Debt Protection Benefit my Business?

Did you know a business operating on a 5% net margin will need an additional £200,000 in new sales to recoup a £10,000 bad debt? Having a bad debt protection plan in place helps avoid this need by preventing the loss at its source.

A number of financiers, including Calverton Finance, offer bad debt protection alongside an invoice factoring service. This combination is becoming increasingly popular as it enables companies like Calverton Finance to deal with many of the administrative aspects of invoice finance, such as credit checks and debt collection, on your behalf, allowing you to spend more time focusing on other aspects of your business.

To find out more about Bad Debt Protection, download our information sheet. Alternatively, for a personalised Bad Debt Protection quote, complete our online form now and receive a response within 24 hours.

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