Debt Protection

Concentration limits. Most invoice finance providers will quote “concentration” limits, often of something like 30%. What that normally means is that if one of your customers’ debts accounts for more than 30% of the total debt owed, then no more invoice finance is available for invoices to that customer.

For a new start up with few customers of which one is relatively large, or for a personal service company (where typically work is supplied to one customer at a time) that restriction can be a cash flow disaster and turn an otherwise successful company into a failure.

With Purple Factors Bad Debt Protection, concentration simply isn’t an issue and (whilst it is not a recommended business strategy) even if your business took off with just one customer taking up all the debt, then provided the total debt stays within the credit limit we advise for that customer, then you can increase trade with them to your heart’s content.