Invoice Finance

Debtor Protection

Did you know that to recover a £25,000 bad debt a business with a 5% net margin would need to find an additional £500,000 in sales?

Debtor Protection is an optional service that works alongside an Invoice Finance facility and helps reduce risk from late and non-payment of invoices to further protect your cashflow

Blue illustration of a cityscape with an orange hot air balloon flying over it

Key benefits of Debtor Protection

  • Icon of white process arrows going down a list of three tasks


    Cover against all or selective customers, UK or worldwide (subject to facility cover)

  • Blue medal icon


    Access to a dedicated team who help make things seamless

  • Lightbulb icon on a light blue background


    In most cases we provide limit decisions within just 24 hours

  • Light blue jigsaw icon


    24/7 online system accessible from anywhere to request limits

  • Question mark within a target visor on a light blue circle


    Cover can normally be backdated 60 days from sign up for enhanced protection

  • Cover

    100% cover of all approved debt less minimum retention and VAT

Debtor Protection Key Facts

Download product sheet

What is Debtor Protection?

Debtor Protection is an additional service provided by Ultimate Finance which works alongside an existing Invoice Finance facility and can help protect a business from bad debts either as a result of a customer’s insolvency or protracted non-payment.

The main reason our clients choose to add this is for peace of mind when offering their customers credit terms. Debtor Protection can help prevent damages to cashflow and profitability.

At times of economic uncertainty and rising insolvencies, it makes good sense to protect what is often the largest asset on a business’ balance sheet – trade debtors.

Who is Debtor Protection for?

Debtor Protection is for businesses who sell to other businesses on credit and use Invoice Finance as a funding line. It can be added to an existing facility, or started on the first day of a new facility.

How does Debtor Protection work?

Debtor Protection transfers the risk of non-payment to us and means that a business can confidently and safely extend credit to its customers knowing that invoices are protected should the worst happen.

There are two types of Debtor Protection: Selective Debtor Protection where the service only applies to a selected number of debtors subject to an agreed limit, and Whole Turnover Debtor Protection where the service applies to all debtors subject to an agreed limit.

Debtor Protection applies to invoices that remain unpaid because of a debtor’s insolvency or protracted default. It normally pays 90% of the net invoice value subject to a minimum retention of £1,000 or 10% whichever is greater.

Invoices that are linked to or unpaid due to the following are not covered by Debtor Protection: Disputes, government bodies, trade, damages, compensation, penalties, pay when paid, fraud, VAT, terms greater than 120 days

Can a new client of Ultimate Finance receive Debtor Protection?

Normally, yes, and invoices raised in the 60 days prior to a facility starting may be covered at an additional cost and subject to the debt not being seriously overdue.

To ensure an invoice is protected, a business will need to apply for limits which will be individually agreed via an online platform we provide access to. Limits are not guaranteed and are dependent on several factors. Limits should be requested and agreed in writing before goods and/or services are supplied, as failure to do so will likely mean there will not be any cover in place.

How much does Debtor Protection cost?

Debtor Protection is charged at a fixed percentage on a business’ ledger plus VAT depending on whether it is selective or whole turnover. All active limits are charged at a set fee per month plus VAT. Full details of charges are included within a business’ agreement with us.

What support is provided alongside the service?

In addition to the peace of mind Debtor Protection offers, Ultimate Finance also provides the support of a dedicated team on hand to help clients with any queries and access to a user-friendly online portal that can be accessed anytime, anywhere.

How to get started?

To find out more about Debtor Protection or add it to your existing facility, simply email our dedicated team via

Customer Success Stories

Discover how Debtor Protection has helped keep businesses moving

Let’s get things moving

If you would like to talk to us about any funding needs, call us on 0800 121 7757, register as an Introducer or request a quote for your business today