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Find out more about invoice insurance

How can I protect my business against bad debt while corporate insolvencies seem to be rising exponentially?

The easiest way to protect your bottom line is to take out invoice insurance on your unpaid invoices.

How does invoice insurance work?

Invoice insurance protects you from unpaid invoices (accounts receivable). Let’s say your business has a customer who is unable to pay an invoice. If you’ve insured this invoice against customer insolvency, you won’t incur any financial loss if your customer doesn’t pay you. If your customer becomes insolvent or enters administration, you can file a claim for 90% of the invoice value. *  
*T&Cs apply

What’s the difference between invoice insurance and traditional trade credit insurance?

You can think of invoice insurance as a flexible type of trade credit insurance. With invoice insurance you can select only the invoices that you want to insure, whereas with traditional trade credit insurance you generally buy insurance for your company’s entire accounts receivable.

How do I take out invoice insurance?

It takes a few seconds to insure an invoice with our partner Nimbla.

Step 1: Sign up free. You can either enter an invoice manually or connect your accounting software with Nimbla.

Step 2: Nimbla then assesses the risk of each invoice and shares this with you.

Step 3: You choose which invoices you’d like to insure.

Step 4: Nimbla’s sister company collects your debt if payment is late.

Step 5: Nimbla pays you 90% of the value of your invoice(s) if your customer is insolvent.

Can I take out invoice insurance for an invoice I’ve already issued to a customer?

Yes. You can insure pre-issued invoices with Nimbla for up to half of their payment term.

How many invoices can I insure?

You can insure as many individual invoices as you like from just at £5.60.*
*T&Cs apply

How long does the cover last?

Your invoices are covered for 12 months from the invoice due date.

What’s the maximum invoice amount that I can insure with Nimbla?

You can insure invoices up to £500,000, depending on the risk associated with your customer. 

What’s the difference between invoice insurance and invoice finance?

Invoice insurance gives you protection against credit risk – most likely customers being unable to (or refusing to) pay you. Invoice finance is more about smoothing out your cash flow – you are advanced most of the value of an invoice (or all your invoices), in the full expectation that it will be paid. It’s an advance i.e. a debt product. You can of course take out invoice insurance as a bolt-on to invoice finance.

How many UK businesses are at risk of insolvency caused by the pandemic?

One in ten businesses say they are at risk of insolvency due to the pandemic, according to a recent ONS survey on the business impact of coronavirus, published in August 2020. Ten per cent of businesses questioned said they were at “moderate risk of insolvency” and one per cent put the risk at “severe”. These figures are consistent with what our customers are admitting to us.

What is the difference between corporate insolvency and bankruptcy?

If a business is insolvent it doesn’t necessarily mean it’s destined for bankruptcy. Insolvency is essentially a state of economic distress, whereas bankruptcy refers to the actual court order that summarises how an insolvent debtor will deal with unpaid obligations. This will usually involve selling assets to pay creditors and erasing debts that can’t be paid.

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