Back
FAQ > Bad Debt Protection

Bad Debt Protection

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.

Reasons for taking out Bad Debt Protection:

1. Secured cashflow

If your customers are unable to fulfil payment terms, you'll still receive payment, minimising the impact of losses on your business.

2. Confidence to grow

Increase your customer base without increased risk

3. Take control

Bad Debt Protection is on demand when you finance your invoices. You choose which invoices you want to protect.

4. Peace of mind

We manage the claim if your customer is unable to pay.

What will it cost?

1. Pricing is indicated for each invoice you select for finance.

2. You can select which invoices or customers you want Bad Debt Protection against and the fees

are automatically totalled for you.

3. No need to collect payment via credit/debit card, as the fee is simply deducted from the

finance advance amount.

4. 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?

1. Select invoices that you wish to finance. 

2. On the page that you confirm your selection, each of your invoices are priced indicating the level of coverage we can offer.

3. Select one or many invoices for cover. 

4. The price given is the price deducted from the advances made on financing your invoices.

5. You will receive an invoice from Satago detailing your Bad Debt Protection fees with 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.

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.

Example

See for yourself the losses you protect your business from if your customer becomes insolvent:

 

Bad debt protection