Many businesses use Trade Credit Insurance to protect themselves against the failure of one or more of their customers. The reason of this is an uncertain economic climate and bankruptcy.
 That's why, an alternative to credit insurance by offering non-recourse arrangements was provided by factors and discounters. This alternative offers the way where for approved customers the risk of any loss is assumed by the Factor.
That fact that for a fee of on average between 0.2% -0.3% of turnover you will receive 100% cover and priceless advise about the credit worthiness of your customers, will be the key difference.
One of such provider is GMAC Commercial Finance the UK's largest Independent Asset Based Lender and Invoice Finance provider.
GMAC can tailor a facility to suit your requirements and have an experienced Underwriting Team covering all sectors and industries.
You should know that as a client you will be allotted a dedicated Credit Analyst who will assess your customers and keep you informed about any changes in their financial performance.
There are no fees for individual credit applications or Insurance Premium Tax with a simple charge levied against invoices factored.
Unlike credit insurance you will also receive free litigation on approved debts and for Factoring Clients they guarantee payment of approved debts 120 days from due date, rather than having to get involved in protracted litigation.
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