Debtor protection

Debtor Protection

Protect your business against the impact of customers failing to pay invoices.

What is Debtor Protection?

Customers failing to pay the money owed to you is a risk that every business faces, and the consequences can be detrimental. Debtor Protection aims to protect your business from the risk of unpaid invoices. It is an additional service that works alongside Invoice Finance and can help protect a business from bad debts from non-payment or insolvency.

Our Debtor Protection is a low-cost, easy to manage facility that will protect up to 90% of the value of your invoices, giving you peace of mind.

Is your business eligible?

You can apply for Debtor Protection if you are:

  • Selling business-to-business and on credit terms.
  • A Lloyds Bank Invoice Finance customer.

Keep in mind

We would need to know:

  • Previous two years’ turnover and turnover year to date.
  • Any bad debt experienced in the last 3 years.
  • Any outstanding aged debtors.

Talk to one of our Debtor Protection specialists

Talk to one of our Debtor Protection specialists

Call 0800 169 4356

We’re available from 9am to 5pm, Monday to Friday, except public holidays.

Request a callback

What are the benefits of Debtor Protection?

Protect

Protect up to 90% of invoice value, should your customer fail to pay or go into administration. Cover both UK and overseas debt.

Specialist support

Our specialist, UK-based telephony team is on hand to provide support and training alongside a dedicated Client Manager.

Spot credit risks

We can help you spot a potential credit risk before it becomes a bad debt.

Online systems

Access to an intuitive, online system where you can manage your facility with ease.

Debtor Protection terms and conditions

How to apply for Debtor Protection

Steps to take

  1. Hold a Lloyds Bank invoice finance facility.
  2. Speak to your Client manager to get a quote for Debtor Protection.
  3. Apply and sign the agreement for your facility to be set up.
  4. Support from a dedicated team, alongside training on the e-bonded system.

Frequently asked questions

  • Types of bad debts covered by Debtor Protection are:

    • Insolvency – this includes Administration, Company Voluntary Arrangements, Individual Voluntary Arrangements, Liquidation, Bankruptcy and Receivership.
    • Protracted default - Customers who can pay but won’t pay or who refuse to engage.

  • Every Debtor Protection facility is priced on a case-by-case basis and will vary depending on business size, sector and customer base.

    Call us to speak to one of our Debtor Protection specialists.

  • If within 30 days of the activation of your Debtor Protection facility, we are unable to offer protection on 55% of the aggregated value of the customers you apply to protect, you can cancel with a full refund.

 

Looking for Invoice Finance solutions?

Boost your cash flow with Invoice Finance and get early access to money owed to you. Our dedicated client managers have over 600 years’ combined experience.

Invoice Financing

Factoring and Invoice Discounting facilities may be provided by one or more of Lloyds Bank Commercial Finance Limited, Lloyds Bank plc and Bank of Scotland plc. Lloyds Bank Commercial Finance Limited. Registered in England & Wales no. 733011. Registered office: No.1, Brookhill Way, Banbury OX16 3EL. Lloyds Bank plc. Registered in England and Wales no. 2065. Registered Office: 25 Gresham Street, London EC2V 7HN.

 

Important Legal Information

Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.

The products and services outlined on this site may be offered by legal entities from across Lloyds Banking Group, including Lloyds Bank plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc and Lloyds Bank Corporate Markets plc are separate legal entities within the Lloyds Banking Group.

Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.

Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.