Bad Debt Insurance

How does Credit Protection work, Thousands of businesses rely on sales from multiple customers and credit protection, also referred to as credit insurance, which helps to preserve credit health for businesses. If serious bad debt were to arise from a key account or customer, financial stability could be affected significantly.

Whole turnover - this is when an insurer agrees to pay out - up to around 90% - against all potential bad debt based on your client ledger, in the case of commercial losses caused by debtors. This would be for a given period - commonly 12 months, but there are more flexible solutions also available.

Invoice insurance - this is a more selective form of cover, provided on an invoice-by-invoice basis and very popular amongst small to medium sized businesses. The likelihood of struggling customers ending up insolvent is high in today’s economic climate. Financial troubles which affect the debtor can have a knock-on effect to the businesses which are owed.

While it is hard to predict the severity of bad debts before they arise, contacting a credit protection expert can help limit the damage afflicted by such a turn of events. What are the benefits of Credit Protection, Security - to the value of your sales ledger, helping you to continue trading in the event of experiencing bad debt. Peace of mind - that your business can remain stable. Confidence - you can take on new customers and market opportunities.

Why use Touch Financial, Managing credit risk is complex for any business, whether you are pre-trading or better established. Our experienced broker team has a comprehensive knowledge on bad debt and the options available in the event of non-payment. Combining our expertise around finance facilities and relationships with the most suitable credit insurers currently available also puts us in a unique position to help.

A mortgage is deemed to be a very difficult loan to handle, post the economic recession years. A problem that the entire credit industry suffered from, was, the lack of installment payments. During the recession due to loss of jobs, people were unable to make timely installments to the mortgage payments. This resulted into many foreclosures and in certain cases, bankruptcies during the time course of the economic bubble.

The drawback was that loss of installments was a loss to the lenders, not to mention people losing their homes and damaging their credit report. A plan for mortgage protection is probably the best solution to avoid chaotic installments and ultimate forecloses. Like any insurance plan, a mortgage payment protection plan is meant to secure and safeguard the financial interests of the policy holder, who in this case, is the mortgage borrower.

The working of this type of policy is slightly different from other types of insurance policies. The basic interest that this policy safeguards is the payment of installments to a mortgage loan. In many cases, it so happens that the borrower of a mortgage is unable to make a timely payment of installments.

Due to some unforeseen reasons such a sickness, divorce, death or disaster, the borrower is not able to make a payment. In cases where the borrower is also a holder of protection plan, the insurance company pays the mortgage installment on the borrower's behalf. So how does a mortgage insurance protection plan work to make mortgage payments, Well, the explanation is quite simple and straightforward.

A person who has borrowed a mortgage can apply for such a policy. The person purchases the plan or rather the policy for a specified consideration. Then the policy holder has to make premium payments to the insurance company. One single payment usually amounts to about 1% to 5% of the total mortgage amount that is to be insured. The policy has a specified period for maturity, which is usually equivalent to the number of years for which the policy lasts.