Invoice and asset-based finance specialists Venture Finance PLC last week launched a free bad debt protection service for small to medium size companies new to Venture's factoring services. Venture has launched the service to help SMEs maintain their cash flow during a period of economic uncertainty.
Venture's bad debt protection means that if a credit approved customer fails to pay an undisputed invoice, Venture will credit the client company with the amount of the debt.
Thousands of otherwise profitable companies fail each year as a result of financial difficulties experienced by their own customers. The British Chambers of Commerce studied 7,400 businesses, indicating that manufacturers are experiencing the most severe deterioration in cash flow since 1992. A Dun and Bradstreet survey in October 2001 shows that 18,191 small businesses have failed so far this year - an increase of 3.5 per cent over the same period last year .