Small to Medium Sized businesses are urged to consider bad debt protection to combat the rise in bad debts highlighted recently by Registry Trust.
Registry Trust, which collects and distributes court judgment information in the public interest throughout the UK, has revealed there was a marked increase in bad debt judgments against businesses in 2007. The rise of 4% to 185,395, takes the number of judgments to the highest level since 2001.
Malcolm Hurlston, the chairman of Registry Trust, said: “The next 12 months should be interesting. I certainly expect the upward trend in commercial judgments to continue in 2008 which promises to be a tough year for British businesses, especially in the small and medium-sized enterprise sector, against which most of the commercial judgments are made.”
Bad debt protection solutions are available to both factoring and invoice discounting clients’ and will be tailored to the needs of the individual businesses. Bad debt protection provides clients with protection for up to 90% of any loss suffered by reason of the failure of a debtor to pay, owing to insolvency or protracted default.