Unfortunately in today’s uncertain economic environment customer failure is a real and ever increasing risk. 

The good news is that protecting your business from debtor default is more affordable and more flexible than ever.

Calverton Factors have developed a Debtor Protection product that protects your business against the risk of your customers failing to pay. This protects you not only from bad debt, but also from protracted default (where the customer just isn’t paying) whether debtors are based in the UK or overseas.

How does it work?

The web-accessed “ebonded” system allows you to apply for credit limits 24/7 and you will normally get an instant online response.  If the limit is not sufficient then there is an appeal option. 

There is also a monitoring system which alerts you to any potential problems with existing, protected customers.

Typically, 90% of the value of a bad debt is insured.   If there is a claim then this can also be completed online.

Costs

The cost of Debtor Protection will vary depending on the type of business you have, your terms of trade, the credit standing of your customers and your bad debt history.

However, rates will range from 0.3% - 0.5% of your sales turnover.  For a business with sales of £1m you can have peace of mind for as little as £5,000 per year.

Calverton will make sure that you are provided with a product that is best suited to your requirements and to your budget.

For more details on how Debtor Protection can help your business please speak to your account manager or email Greghussey [at] calvertonfactors [dot] co [dot] uk