What is Bad Debt Protection?

Customers failing to pay the money owed to you is a risk that every business faces, with the consequences often being detrimental. Bad Debt Protection (BDP) is a sensible choice for any business wishing to safeguard against these potential losses.

BDP protects your business against bad debts, allowing you to trade confidently with your customers, knowing that your cashflow is safe. Used alongside your Invoice Finance facility with us, BDP protects your business if your customers can’t pay – giving you peace of mind and the ability to focus on developing your business.

The flexibility of BDP means that we can tailor it to the individual requirements of your business, meaning you can protect your whole ledger, or selected customers.


Bad Debt Protection (BDP) gives you peace of mind and helps safeguard the cashflow of your company if your customers fail to pay the money owed to you. BDP can be tailored to your individual business needs, meaning you can protect your whole sales ledger, selected customers and also choose to protect both UK and export customers. 

Simply put:

  • You can choose to protect the whole of your sales ledger or selected customers.
  • We will confirm a BDP limit for the customers you requested limits on. If we cannot provide a limit, we will confirm the reason why.
  • We can provide up to 95% of the debt outstanding, excluding VAT, as long as the balance exceeds £500.
  • BDP can protect both UK and export customers.
  • It compliments your Invoice Finance facility, with minimal additional administration for you.

What are the benefits?

Bad Debt Protection (BDP) can be hugely beneficial if you are worried about potential customer bad debts and are looking for peace of mind, so your business can trade confidently.

Secure - you can be protected for up to 95% of the value of an invoice, should your customer fail to pay or go into administration.

Fast - in most cases, the bad debt protection limit decision will be within 24 hours.

Trade with confidence - knowing you’re protected and that you will receive payment for the work you’ve done, or products you’ve sold, allowing you to develop and grow your business in-line with your plans.

Funding - if BDP is in place on a customer, this often means we can increase that customer’s funding limit in-line with the agreed BDP limit.

Insight - BDP gives you access to greater customer intelligence that leads to balanced risk decisions. We can help you spot a potential credit risk before it becomes a bad debt. Understanding a customer’s credit risk means that, armed with this knowledge, you can act before they become a bad debt.

Business on your own terms - choose the service that suits your business needs by protecting all of your customers, or just a selection.

Is Bad Debt Protection right for my business?

BDP can provide you with peace of mind if:

  • you want to protect your cashflow
  • you want to grow, knowing your sales ledger is protected
  • you have had one or more previous bad debts
  • you want to mitigate the risk that a small number of customers represent a large percentage of your sales ledger

Caring for our clients

Forget automated telephone systems asking you what you want in order to put you through to the right person, you'll have direct access to your very own Relationship Manager, dedicated to helping your business thrive. 

When we say that we offer a personal service, we really mean it.