The Art of Protecting your Business

Debtor Insurance provides security for your business by protecting you against your customer's insolvency or non-payment of invoices.

Get more information on Debtor Insurance

Get a Debtor Insurance quote

You may run a very successful business, however, have you thought about what would happen to your business if one of your customers became insolvent?

What would the impact be on your business?

At Lloyds TSB Commercial Finance we have a dedicated team who will work with you and provide you with a low cost, easy to manage, service which could protect you from potentially damaging losses, if a major customer suddenly fails.

Who is eligible for this Debtor Insurance?

Companies that sell on:

1. A business to business basis.
2. Unsecured credit terms.

And companies with:

3. Anticipated turnover of £200k or more per annum.
4. More than one customer.

If the four points above apply to you, you are eligible to purchase this Debtor Insurance product.

Features and Benefits of this Debtor Insurance

  • Protects you up to 90% of bad debts suffered.
  • Protection for your accounts receivable ledger which is an important asset.
  • Protects against the insolvency or protracted default of your insured customers.
  • Enhances your business controls.
  • Our credit monitoring service may help you identify a potential credit risk with one of your customers before it becomes a bad debt.
  • Allows bad debt provisions to be reduced.
  • Protects your risk against work in progress/timesheets.
  • Releases capital for business expansion.
  • Offers protection on domestic and export debts.
  • If within 30 days we cannot cover 55% of your ledger in value you may cancel with a full refund of any premium paid.

Some reasons why businesses buy Debtor Insurance

  • To reduce the credit risk of trading on unsecured terms of payment.
  • Even large, apparently safe businesses fail.
  • Corporate failures in the UK have jumped by 10.7% in 2006 to 20,067 according to the latest figures released by (Experian), the global information solutions company 1,938 more failures than were recorded in 2005. This is the highest annual number of corporate failures recorded since Experian began reporting in 1997.
  • Cashflow is a main driver in crippling many small firms each year.

How does it work? - it’s very simple

Step 1
We will ask you for some basic information and provide you, free of charge, with a quote for Debtor Insurance and an initial assessment of your top 10 customer limits.

Step 2
Once you agree to our quotation, you will be provided with a link to our on-line system where you can request limits on your customers and manage the facility. The system is also interactive, allowing you direct communication with limit underwriters.

Step 3
There are reporting requirements for you to feed back information on overdue debts (standard terms + 60 days) via the on-line system. This is a very simple procedure, which should take you no more than 15 minutes per month.

Exclusions, Limitations and restrictions of this Debtor Insurance

  • Cash or consumer credit sales.
  • Sales to government buyers in the UK.
  • Sales to associated companies or a company where you have a shareholding or financial interest.
  • Sales where a valid credit limit has not been issued for one of your customers.
  • Sales made on a consignment stock basis.

What cover is provided?

Insolvency: Where a company goes out of business.  Claim payments due to Insolvency will normally be made within 30 days of confirmation of debt.

Protracted default: Where a UK company fails to pay invoices a claim will be paid when you have a County Court Judgement awarded in your favour or where a non UK company fails 6 months after the due date of the invoices.

We cover not only UK debtors but also debtors in many overseas
countries.

Competitive Charges

We can offer debtor insurance at extremely competitive rates.  These will vary according to size and risk, but will typically range from 0.15% to 0.75% of your annual turnover, but may vary depending on your turnover and the level of previous losses. A minimum premium will only apply in exceptional circumstances.

 

Requirements

Internet connection

Service Features
  • Whole turnover policy (offer all your debtors for cover).
  • 90% indemnity.
  • Typically a £1000 excess. Other excesses or bespoke structures are possible.
  • Interactive system allowing on-line access to underwriters puts you in control.
  • Covers UK and Export sales.
  • Right to terminate giving notice of one calendar month at any time.

 

Want further information or a no-obligation quote?

If you would like a member of our team to contact you to provide further information or for a no obligation quote click here

This insurance is arranged by Lloyds TSB Commercial Finance Limited and underwritten by New Hampshire Insurance Company. Lloyds TSB Commercial Finance Limited is an appointed representative of New Hampshire Insurance Company (FSA Register number 202272), The AIG Building, 58 Fenchurch Street, London, EC3M 4AB, which is authorised and regulated by the Financial Services Authority. New Hampshire Insurance Company is a member company of American International Group, Inc. (AIG).