Credit insurance
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Rycroft Associates

Bad Debt Provision

A yearly fund that any company offering credit should have in case of a bad debt. This should be an increasing fund until it covers the worst case senario (your biggest debtor going under) It is not a fund for easy finance (as some pension funds seem to be treated). This can be supplemented by credit insurance which then releases capital tied up in the fund (or if you are a new company, then you won't have built up any fund, this makes the company vunerable and again credit insurance should be implemented to safeguard the companies future).



 
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