Business Finance - Protecting Future Income with Credit Protection
Credit protection is a way to minimise the impact of bad debts, which have a negative effect on both profits and cash flow.
It is a commercial reality that some businesses fail, leaving a trail of creditors who are unlikely to be paid. Unfortunately it can be hard to predict exactly which businesses will fail and if a failing business has significant debts it can also pull some suppliers down with it.
Credit protection is a valuable addition to an organisation’s business finance armoury because it provides certainty that debts will be paid even if a customer goes out of business. No business wants to be placed in a difficult position because one of its major customers unexpectedly becomes insolvent.
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How Credit Protection Works
Bad debt protection services are designed to complement other business finance solutions such as Invoice Finance arrangements. The provider of the protection service determines credit limits for customers, giving confidence that if they are unable to pay, the debt will still be settled.
Protection is available against both formal bankruptcy and protracted periods of non-payment. The precise details of the services available vary between providers, meaning businesses can find a solution that meets their particular needs.
The Benefits of Credit Protection
Taking steps to guard against bad debts offers more advantages than simply protecting the bottom-line. It also:
- Prevents unexpected cash flow problems.
- Provides an extra level of credit checks on customers.
- Reduces the administration associated with bad debts.
- Helps to offer competitive advantage through reduced risk.
- Provides a level of cover that can grow with the business.
- Offers peace of mind.
When combined with Invoice Factoring, credit protection delivers an extremely robust cash flow solution to business.
Credit Protection Advice From Touch Financial
We have years of experience with helping UK organisations find the business finance solutions that address their specific needs. This includes sourcing the best value credit protection and Invoice Finance packages.
We are the UK’s leading commercial finance broker and we work with a carefully selected panel of lenders including leading UK banks and smaller specialist funders. We are able to offer exclusive discounts and other benefits from selected lenders.
Our service is free to use because our fees are paid by the lenders and our internal structure ensures that our expert advisors are able to give independent and impartial advice.
If you want to know more about credit protection and Invoice Finance, make contact with us today for a no-obligation consultation or just to get a quote. It is important to safeguard your business income and cash flow so it makes sense to act now to minimise risk.
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Every month Touch Financial help businesses improve their cash flow with invoice finance. Request a quote to find out how much extra cash you could raise.
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