Bad debts can strike at any time. Even global household names can fail. In the ‘worst case’ scenario, the consequence of a bad debt could be terminal for your own business. Smaller bad debts can still leave a gap in your cashflow; worse than that may be the fact that you’ve lost a customer and hence their future purchases. With a 5% profit margin, a bad debt of £50,000 will need replacement sales of £1m just to ensure your business ‘stands still’, let alone grows! Get in touch with us here to find out more information on how this can be avoided.
Our plc client, a provider of communications solutions across the UK suffered a significant bad debt with the failure of a notable US bank in 2008/09.
“We always viewed our debtor book as blue chip until we suffered such a loss. Our policy protects us from a catastrophic loss with a very reasonable self-insurance level and a cost effective premium.” – Credit Control & Data Analyst