Bad Debt Protecton / Credit Insurance

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Even the most reliable-looking customer can run into financial trouble. If they become insolvent or simply fail to pay, the impact on your business can be severe. This can mean delayed growth, damaged cashflow, and in worst cases, the loss of your own suppliers and staff.

Bad Debt Protection (BDP), also known as Credit Insurance, is designed to safeguard your business from these risks. It works by protecting a portion, or in some cases all of your outstanding invoices against non-payment. If a covered customer cannot pay due to insolvency or protracted default, the insurer steps in to reimburse you, keeping your cashflow moving and your business protected.

1. Set Up Cover – You choose the customers or overall turnover you want insured, based on your trading patterns.
    
2. Credit Limits Assigned – The insurer assesses each customer and sets an insured limit. This is the maximum amount they will cover for that debtor.
    
3. Trading with Confidence – You continue to trade as normal, knowing you have protection in place.
    
4. Making a Claim – If a customer cannot pay within agreed terms due to insolvency or prolonged non-payment, you make a claim and receive a payout for the insured amount.
    

• Protects Cashflow – Ensures you still get paid even when customers fail.
   
• Reduces Risk – Safeguards your business from unexpected losses.
   
• Supports Growth – Helps you trade with new customers or extend higher credit limits with confidence.
   
• Peace of Mind – Lets you focus on running your business without worrying about “what if” scenarios.

At Pinnacle Funding Solutions, we help you secure the right bad debt protection or credit insurance policy. This can be as a standalone product or built into your invoice finance facility, ensuring you get competitive cover at the right price.