We were recently introduced to a respected, family-run maintenance and service business through one of our professional contacts. Although the business had built a strong reputation over many years, it had faced a particularly challenging period following Covid. A combination of factors had affected performance, including:

• Several bad debts from customers
• Rising employment costs to retain skilled staff
• Increasing supplier prices and general expenditure
• Poor accounting advice
• Weak cash-flow management

Whilst the company had been using invoice finance for several years, as is often the case their existing provider had become restrictive, particularly due to high customer concentration levels.

At Wise Business Finance, we always take the time to fully understand each client’s situation and tailor a funding solution that works for their needs. We work with a wide panel of invoice finance providers, enabling us to swiftly match this businesses needs with a funder who offered an improved and more flexible solution.

This resulted in a new £500,000 invoice finance facility with built-in bad debt protection. The new provider also ensuring a smooth transition from their previous lender and minimising any disruption to cash flow. This new funding line has provided the business with the working capital and confidence needed to trade securely and plan for future growth.

What is bad debt protection (also known as credit insurance)?

Bad debt protection safeguards a business against the risk of non-payment by its customers. If a client becomes insolvent or fails to pay an invoice within an agreed period, the insurer covers the loss (up to an agreed limit). This protection ensures that your cash flow remains stable even if a key customers is unable to pay, giving the business greater confidence to extend credit and grow.

By understanding our client’s challenges and introducing a funding partner who could offer both flexibility and security, we helped create a platform for sustainable recovery and long-term success.

 Are you a business facing similar challenges, or do you work with clients who might be? Wise Business Finance would be happy to have a no-obligation chat or provide a free no obligation review of your current invoice finance facility to see how we can help improve cash flow and protect your business.

Contact us today or call our team on 01635 785400.