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Bad Debt Protection

Paul Hindle,TRADE FINANCE FROM CREATIVE CAPITAL LIGHTS UP SPECIALIST FIRM We put in place a trade finance facility which enabled a specialist lighting company to fulfil sizeable new contracts. Our client: Lumenata Lighting Design, is a £600,000 turnover business that designs, supplies and installs fully customised lighting schemes for commercial and residential properties in the UK and Europe. Established in 2006, the business boasts a diverse client base including office developers, public sector organisations, owners of private residential properties and operators of hotel, retail and leisure facilities. High profile projects the business has been involved with include London’s iconic Shard building,…

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Bad Debt Protection insures your ledger against customer insolvency. Working alongside Bluefin Insurance Service, Creative Capital are able to offer this facility to our customers, providing cover against invoices financed by us.

Offering bad debt protection to our clients allows them to finance invoices with Creative Capital, safe in the knowledge that they are protected against catastrophic events. This level of comfort also allows our clients to actively tender for contracts which would previously have been beyond them. The ability to finance the invoice, along with the comfort of knowing the debt is insured, allows our clients to accelerate growth plans with the right debtors, at the right time.

We insure our debt with Euler Hermes, who are the UKs leading credit insurance provider. With access to unparalleled information through their regional risk offices and client network; rather than just relying on filed accounts, we now have access to live information. This means our credit underwriting is much more accurate, and allows us to underwrite facilities which we would previously have declined.

What is insured?

  • All transactions financed by Creative Capital to insurable debtors
  • All types of insolvency, including administration and CVA
  • Protracted Default where your debtor can’t pay or won’t pay, but should have paid (this excludes genuine disputes which are not insurable)
  • Only debts financed by Creative Capital are captured under the insurance
  • Export debt can be considered, depending on the country

What is the process?

When a new client is applying for a facility with us, they simply tell us the name, registration number and what their invoice size is, and we can do the rest. Once we have the credit limits back from Euler Hermes, the facility set up can be completed.

Current customers can add new debtors to their facility as and when required. They simply email us with the debtor details and amount required, and we can add this to the facility for them.

Administration of the facility is looked after by Creative Capital. Everything from obtaining cover, reporting overdue debts, to making a claim.

What is the cost?

For UK debts, there are no additional costs to our client. The costs are covered within the cost of borrowing. For export debt, there may be an additional fee, depending on the debtor and country being covered.

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