Bad debt protection gives business peace of mind
Isomass Ltd is a soundproofing company, supplying goods to the construction industry.
The business has been providing a wide range of domestic and commercial building solutions since established by company directors, Iain Mair and David Bignell, in 2007.
The challenge
David and Iain had considered the funding options that would suit the size of the business and the nature of the industry they operated in. They needed a factoring arrangement with a credit control team that they could trust to chase any debtors for unpaid invoices, leaving them to concentrate on growing their business.
With limited initial resources, Isomass had recognised that chasing outstanding customer invoices would burden sales at a crucial time. In addition, knowing that they would be covered if any customers had difficulties paying was seen as essential.
The solution
Close Brothers Invoice Finance provided a £75,000 factoring facility, and Isomass Ltd also took advantage of our bad debt protection product. Working alongside the factoring arrangement, this service provides essential cover against any potential loss that might otherwise not be recovered. David said, "You never know what can happen – even big companies can face financial difficulties and bad debt protection gives us peace of mind to know that the business can progress even when faced with customer insolvencies”.
The result
Since working with Close Brothers, Isomass Ltd has experienced two instances of bad debt which could have lost the business over £4,000. Besides providing cover against any credit approved customers getting into difficulty, Isomass know they can rely on the expertise at Close Brothers to help them make informed decisions about new customers.
David commented: “The team at Close Brothers Invoice Finance are great to work with and I know I can rely on them to chase my outstanding customer invoices and offer valuable advice. By allocating a percentage of my profit to the bad debt protection service, I can sleep at night, safe in the knowledge that my business is protected.”
