Available as an additional feature of Invoice Finance, Debtor Protection is a low-cost, easy-to-manage facility that helps protect your business from potentially damaging bad debt if a customer fails to pay.
Features and benefits
- Protection − your business is protected for up to 90% of the value of a protected customer failure excluding VAT.
- Confidence − you can trade in the UK and overseas, knowing which of your debts are protected.
- Control – stay in charge with our online system.
- Cashflow – allows bad debt provisions to be reduced and replaces cashflow that would have been lost due to bad debt.
- Flexibility – with our no obligation trial.
Is it suitable for my business?
Debtor Protection can be suitable if your business sells to another business on unsecured credit terms, and you anticipate that your turnover will be £200,000 or more per year. However, if your turnover is less, you may still be eligible.
The facility cost varies according to your business size, sector and customer base - but typically ranges from 0.20% to 0.85% of annual notified turnover. If you do not achieve the expected level of turnover there will be no additional costs incurred.
No obligation trial
If within 30 days of the commencement of the Protection Period under your Debtor Protection facility we are unable to offer protection on at least 55% of the aggregate value of the Protected Limits you apply for under the facility, you can cancel with a full refund of any Debtor Protection Fees and Protected Limit Charges referred to in your facility, which were paid by you.
Call us on 0800 3895084 to learn more about Invoice Finance with Debtor Protection and our other business funding options.
Why Lloyds Bank?
As one of the largest banks in the UK, your business will benefit from our specialist approach, commitment to long-term relationships, expertise and access to dedicated sector knowledge.
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Whichever industry you operate in, our facilities can be quickly scaled up to meet your exact requirements.