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What is Bad Debt Protection?
Understanding bad debt protection and how it works
Bad debt protection safeguards businesses from financial losses caused by unpaid invoices due to customer insolvency or non-payment. It covers a percentage of outstanding invoices to maintain cash flow and reduce financial risks from unreliable customers.
Ready to protect your business?
Don’t let unpaid invoices disrupt your business. Contact Novuna Business Cash Flow today to learn more about our bad debt protection services and get a personalised quote.
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Pages in this SectionHow does bad debt protection work?
Bad debt protection ensures your business is compensated for a percentage of your unpaid invoices if a customer defaults. Here’s how it works:
- Select coverage: Choose the customers or invoices you wish to protect.
- Pay a premium: A small premium is applied, tailored to the level of cover you require.
- Get paid: If your customer is unable to pay due to insolvency, you’ll receive compensation for up to 90% of the invoice value.
- Continue trading: Protecting your cash flow allows you to focus on running your business without financial disruption.
Our team at Novuna works with you to tailor a bad debt protection plan that fits your business needs.
Key benefits of bad debt protection
- Safeguard your cash flow: Protect your business from the risks of unpaid invoices
- Tailored coverage: Choose which customers or invoices to include in your protection plan.
- Peace of mind: Focus on growth without the constant worry of bad debts.
- Comprehensive support: Our team will guide you through the process and provide ongoing assistance.
- Enhanced stability: Build resilience against economic uncertainty and customer insolvency.
Who is eligible for bad debt protection?
Bad debt protection is ideal for businesses that:
- Operate in the B2B space.
- Have regular invoicing with trade credit terms.
- Are looking to minimise the risks associated with unpaid invoices.
- Want to protect cash flow while maintaining customer relationships.
How to get started with bad debt protection
Getting started with bad debt protection is simple:
- Assess your needs: Identify the level of protection your business requires.
- Speak to our experts: Contact our team for tailored advice and guidance.
- Submit your documentation: Provide information about your invoices and customers.
- Start protecting your business: Once approved, you can begin safeguarding your cash flow immediately.
Bad debt protection FAQs
Is bad debt protection the same as credit insurance?
No. While both provide coverage against non-payment, bad debt protection is often more flexible, allowing you to choose specific customers or invoices to protect. Credit insurance typically covers your entire customer base and requires comprehensive credit assessments.
What does bad debt protection cost?
The cost varies depending on the level of coverage, the value of invoices, and the creditworthiness of your customers. Contact us for a personalised quote.
Can I combine bad debt protection with other finance solutions?
Yes. Bad debt protection can be paired with invoice finance or invoice discounting to create a comprehensive cash flow management strategy.
Why choose Novuna Business Cash Flow for bad debt protection?
6 month trial period
A 6 month trial period so you can be sure the product is right for you, followed by a 6 month rolling contract – we don’t tie our clients in for long periods.
Digital onboarding
We are the first in the market to offer a digital onboarding process and have been leading the way with our digital capabilities allowing clients to sign up within 24 hours from the first appointment.
Client trust account
Once you become a client you will be given your own trust account, meaning you will get same day availability on your funds. You can also view all of your invoices and payments online at a time suitable to you, 24/7.
No uncleared effects
We have heavily invested in our digital capabilities. This includes the auto allocation of payments using Artificial Intelligence. Ultimately this advance in technology means that our clients access money quicker as well as saving money on interest charges due to auto allocation.
Simple pricing
We aim to make the process of Cash Flow finance as simple and straightforward as possible. Our pricing is very straightforward to understand. For a no obligation quote or an informal chat you can call our friendly team today on 0808 250 0859.
Award winning service
We offer award-winning client services and individual Relationship Managers who are on the other end of the phone or out in the field to visit you in person.
We're an award winning cash flow finance company
Innovation in the SME Sector 2024
Alternative SME Lender of the Year 2023
SME Lender of the Year 2023
Best Use of Technology 2023
Best Provider 2023
We come highly recommended by our customers
"The communication and support has been outstanding. Providing me with all the information I needed regarding new clients coming onto our books. The system they use is so user friendly and the drawdown payments are very efficient in the fast moving world of temporary payroll."
Read full reviewAlternative products from Novuna Business Cash Flow
Invoice Factoring
Invoice Discounting
Payroll Finance
Want to learn how you can boost your businesses cash flow?
Our Cash Flow Resource Hub has been set up to help SME's with cash flow finance advice, tips and resources to help with their cash flow position.
We explore ways you can begin improving your cash flow situation and start getting your business on track to positive cash flow.
