Since Carillion’s collapse, FSB have seen increasing anxiety amongst small businesses about the risks they face dealing with new or larger businesses who may go bust, leaving invoices unpaid.
Late payments and larger companies going into administration can have ripple effects reaching in both directions of the supply chain, hitting smaller businesses very hard. Responding to the Business, Energy and Industrial Strategy (BEIS) Select Committee’s publication of several letters from late-paying businesses, FSB National Chairman Mike Cherry said:
“Some of the payment practices described here are really shocking. A big business waiting 800 days to pay a supplier is nothing short of disgraceful… Many of these businesses are household names. [We are in] a UK late payment crisis which destroys 50,000 small firms a year, stifles economic growth and hampers productivity.”
Studies by Barclays (2018) show that bad debt and late payment are significant issues for the average Small Business owner, with over 58% of businesses surveyed saying they had missed out on opportunities due to concerns about not getting paid.
To combat the risks posed by debtors going into administration, it is advisable to insure your invoices against non-payment (defined as the customer going bankrupt or insolvent). However, for years this has been an expensive option as you could only purchase insurance for either all your invoices (costing thousands of pounds in premiums) or none at all. To make this more accessible for FSB Members, we have partnered with Portal-based Nimbla, who are able to offer single-invoice cover from just £5.60 per invoice.
This means that you can insure individual invoices (at any point within the first half of the invoice’s credit terms) against non-payment due to your debtor going bankrupt or insolvent, without having to insure your whole book.
By simplifying trade credit insurance, Nimbla has built a platform that protects you against experiencing the pain of having to write off debt from your clients, with our Single Invoice Cover solution.
The Nimbla portal allows you to check the risk on your invoices and insure the ones you are worried about in minutes, and FSB members can now take advantage of this simply by signing up and requesting the link.
Want to see how it works? Check out the video below.
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