Credit Protection
What is Credit Protection?
At its most basic, Credit Protection is a product that limits the impact of your customers paying late or becoming insolvent.
A provider of credit protection can designate debts and ineligible, require you to repurchase those debts or reduce the funding available. Credit protection is the ability to limit these factors. When debts, or in many cases invoices, are purchased by a third party, the protected amount will still remain available to you should the customer become insolvent or miss payments.
The Problem
Unfortunately, not all debts are paid on time or ever fully recovered. When a third party purchases a debt or an invoice, there is always the risk that the debtor may miss payments or will declare bankruptcy.
How we can help
At Simple Secure Finance, we can offer a degree of protection on these debts or invoices sold to third parties. By using a Credit Protection product, you can be safe in the knowledge of the security to the value of your sales ledger – helping you to continue trading in the event of a bad debt. Furthermore, Credit Protection offers stability to your business during period of non-payment or insolvency of a debtor.