The easiest way to protect your bottom line is to take out invoice insurance on your unpaid invoices.
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. *
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.
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.
Yes. You can insure pre-issued invoices with Nimbla for up to half of their payment term.
You can insure as many individual invoices as you like from just at £5.60.*
Your invoices are covered for 12 months from the invoice due date.
You can insure invoices up to £500,000, depending on the risk associated with your customer.
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.
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.
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.
We work with world class partners to help us support businesses with finance