Reduce Business Bad Debt and Increase Cash Flow with A/R Factoring
Table of contents
- Reduce Business Bad Debt and Increase Cash Flow with A/R Factoring
- Credit Insurance versus Bad Debt Protection
- Is Bad Debt Protection Costly?
- What is Bad Debt Protection?
- What Does Bad Debt Protection Cover?
- How to Qualify for Non-Recourse Factoring with Bad Debt Protection
- Benefits of Non-Recourse A/R Factoring
- Why Clients pick Bankers Factoring A/R Factoring:
- How Does A/R Factoring Work?
- Ready for the owner-employees of Bankers Factoring to provide fast funding and bad debt protection to your business? Call 866-598-4295 or go to Bankers-Factoring-Application.
Credit Insurance versus Bad Debt Protection
Bankers Factoring is not an insurance agency, so we cannot sell or offer credit insurance.
However, by utilizing our own credit insurance policy, trade credit experience, and strong balance sheet, Bankers Factoring offers you bad debt protection through non-recourse factoring.
Your factoring agreement with Bankers Factoring will map the exact bad debt protection for you and your company. We offer protection against your customer, the account debtor, filing bankruptcy, insolvency, and protracted slow pay.
A client can make the decision to spend $10,000+ on a credit insurance policy or have it included in their invoice factoring rate with Bankers Factoring.
Is Bad Debt Protection Costly?
Has your small business ever been burned by late payment, partial payment, or no payment at all for work your company completed? Over 90% of small businesses experience cash flow issues from slow-paying customers or customers that go out of business. Cash is king, and when your hard work and money get thrown into the garbage of bad debt, it is time to act using Non-Recourse Bad Debt Protection.
This article shows the value of accounts receivable factoring with Bankers Factoring through our non-recourse factoring service. We provide our clients with B2B credit risk management, protecting you when an unforeseen customer goes out of business.
Also, don’t give up equity. Read our article on how to finance your business without giving up equity.
What is Bad Debt Protection?
Bad Debt Protection, also known as ‘BDP,’ ‘Debtor Insurance,’ or ‘Credit Insurance,’ is commonly used alongside accounts receivable (A/R) factoring. Credit Insurance provides clients with the peace of mind that if the customer fails to pay for reasons of insolvency or protracted slow pay, the business will have protection from losses. A/R Factoring is also called Invoice Factoring.
Bankers Factoring provides bad debt protection (B2B credit risk management) through our non-recourse A/R factoring service. Part of our factoring service includes credit risk management to protect your business from unforeseen circumstances or volatility.
What Does Bad Debt Protection Cover?
As business owners and entrepreneurs, the reliability of our cash flow and the solvency of our customers is paramount. Staining your cash flow can be stressful if customers cannot pay their bills. However, non-recourse factoring with Bankers eliminates the stress if your customer cannot pay. Our credit protection will ensure your open Accounts Receivable if the customer fails to deliver payment.
|Insurance Coverage||Bankers Factoring Bad Debt Protection||Typical Bad Debt Protection|
|Protracted Slow Pay||Yes||No|
How to Qualify for Non-Recourse Factoring with Bad Debt Protection
Bankers Factoring works with our clients to customize a recourse or non-recourse factoring solution for your business. When they qualify, our clients benefit from our non-recourse service, as we include our credit risk management (BDP) in our agreement. We offer a low-stress, hassle-free qualification and approval process, all done conveniently and remotely.
To learn more about qualifying for A/R Factoring with Bankers, please visit our previous article, 8 Requirements to Qualify for Invoice Factoring.
Benefits of Non-Recourse A/R Factoring
Accounts receivable factoring is a business finance vehicle for a company to sell their open A/R to Bankers Factoring in exchange for immediate funding. Factoring is a popular form of business financing to eliminate cash flow gaps from customers with extended payment terms.
AR factoring is a debt-free solution for businesses to receive fast funding when customers have 30, 60, or 90-day payment terms. Bankers Factoring offers monthly customized financing programs from $25,000 to $3 million. If your business has open invoices, A/R factoring provides the line to meet payroll, cover overhead, and acquire new business.
Why Clients pick Bankers Factoring A/R Factoring:
- We take on the credit risk; bad debt protection costs included
- Same-day funding after approval
- 24/7 A/R management system
- More time to focus on operating the business instead of collections
- Your factoring line grows as you grow
- No hidden fees
How Does A/R Factoring Work?
The process for accounts receivable factoring is quick and easy. Here is how it works:
- Deliver or perform your work.
- Send your invoices to your customer and us.
- We initiate a same-day advance of 80-93 % of your invoice total directly into your bank account.
- When your customer pays us on their terms, the remaining invoice balance is paid to you minus a small fee.
To learn more about how A/R factoring with Bad Debt Protection works, visit our article, How Invoice Factoring Works, or how does a factoring company work.