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Describes how factoring offers bad debt protection as an alternative to credit insurance.
With an uncertain economic climate and insolvencies rising by 10% in 2002 (source Experian) more and more businesses are using Trade Credit Insurance to protect themselves against the failure of one or more of their customers.
Factors and Discounters provide an alternative to credit insurance by offering non-recourse arrangements, where for approved customers the risk of any loss is assumed by the Factor.
The key difference is that for a fee of on average between 0.2% -0.3% of turnover you will receive 100% cover and invaluable advise about the credit worthiness of your customers.
One such provider is GMAC Commercial Finance the UK’s largest Independent Asset Based Lender and Invoice Finance provider.
GMAC can tailor a facility to suit your requirements and have an experienced Underwriting Team covering all sectors and industries.
As a client you will be allocated a dedicated Credit Analyst who will assess your customers and keep you informed about any changes in their financial performance.
With a simple charge levied against invoices factored there are no fees for individual credit applications or Insurance Premium Tax.
Unlike credit insurance you will also receive free litigation on approved debts and for Factoring Clients we guarantee payment of approved debts 120 days from due date, rather than having to get involved in protracted litigation
If you would like more information about how this service can provide your company with peace of mind then contact GMAC on their freephone 0800 521371 quoting GetFactoring reference GF4.
If you wish to contact us directly at GetFactoring for an independent and free consultation please e-mail us at advice@getfactoring.com. Alternatively if you wish immediate access to an advisor try our Mobile Hotline 07810 635980
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