Bad Debt Protection

Bad Debt Protection is a sensible choice for any business wishing to safeguard against potential losses which may be incurred if customers can’t or won’t pay their debt. Aldermore Invoice Finance clients can request Bad Debt Protection in conjunction with their facility.
Let’s get started

Let’s get started

What is Bad Debt Protection?

Bad Debt Protection (BDP) is optional and can be taken in conjunction with an Aldermore Invoice Finance facility to help protect your finances and mitigate risk from customer non-payment. It can provide peace of mind when taking on new customers or when selling more to existing, giving you the confidence to grow your business.

Bad Debt Protection is a sensible choice for any business wishing to safeguard against potential losses which may be incurred if customers can’t or won’t pay their debt.

How does it work?

We can provide a protection limit for each of your customers, based on their up to date financial status.

  1. You can request BDP to be applied to your entire customer base or for selected customers, which means you can assess the risks specific to a customer and the potential impact they would have on your business should a bad debt occur.
  2. We can protect up to 95% of the debt outstanding excluding VAT, as long as the balance exceeds £500
  3. Bad Debt Protection can cover both UK and export customers
  4. Compliments your invoice finance facility.

Is Bad Debt Protection right for my business?

If a bad debt could have an impact or a damaging effect on your cash flow and business, you may want to consider if it is right for you. 

Bad Debt Protection can help a wide range of businesses if:

  • You want to grow knowing your sales ledger is protected
  • You have had previous experience of a customer bad debt
  • A small number of customers represent a large percentage of your sales ledger.

Get in touch

Contact us to find out how an invoice finance facility with Bad Debt Protection could help your business.  All costs will be outlined in an upfront made to measure proposal for your business, that includes a clear structure of finding and pricing so you know what you’re getting. 

Subject to status. Security may be required. Any property or asset used as security may be at risk if you do not repay any debt secured on it.

A BDP payment of protection is subject to an agreed BDP Limit being in place and subject to compliance with the Invoice Finance Agreement and, in particular, the Conditions applicable to Bad Debt Protection. Please note that whilst BDP provides protection on qualifying factored invoices against customer insolvency, or protracted default, it is not insurance or an insurance product.