At Satago we understand that it's sometimes difficult to assess the risk of customers you give credit to. Bad debt from trading with riskier businesses could lead to potential losses. Our Bad Debt Protection service, powered by Nimbla, gives you the confidence and assurance that you will receive payment for all your hard-earned sales. Bad Debt Protection is available to all invoice finance clients — just select which invoices you want to protect.
Why use Bad Debt Protection?
If your customers are unable to fulfil their payment terms, you'll still receive payment, minimising the impact of losses on your business when customers don't pay.
Confidence to grow
Increase your customer base and take on new business without increasing risk.
Bad Debt Protection is on demand when you finance your invoices. You choose which invoices you want to protect.
Peace of mind
We manage the claim if your customer is unable to pay.
What will it cost?
Pricing is indicated for each invoice you select for finance. You can select which invoices or customers you want Bad Debt Protection against, and the fees are automatically totalled for you. There is no need to collect payment via credit/debit card, as the fee is simply deducted from the finance advance amount. The level of protection is indicated on each invoice (i.e. typically 90%) and covers the net value of the invoice (i.e. the value of the invoice excluding VAT).
How does it work?
Select the invoices that you wish to finance. On the page where you confirm your selection, each of your invoices is priced, indicating the level of coverage we can offer. Select one or many invoices for cover, then the price given includes the cost of bad debt protection. You will receive an invoice from Satago detailing your Bad Debt Protection fees with a VAT reference.
What does it cover?
If your customer is declared insolvent (by way of receivership, administration, liquidation, winding up or Court approved compromise with all of its creditors) or is declared bankrupt, Bad Debt Protection covers 90% of the net invoice value. VAT is excluded as it is recoverable from HMRC.
Is there anything it does not cover?
We cannot cover disputes, or invoices from any company that is known to be insolvent at the time of purchase.
How can I claim?
You do not need to claim, as Satago takes care of any claim with Nimbla and will return the protected amount to you. If there is VAT applicable you will need to reclaim this directly from HMRC.