What Is Bad Debt Protection in Invoice Finance?
Bad debt protection (non-recourse factoring) insures you against customer insolvency. If a covered customer goes bust and can't pay, the provider absorbs the loss instead of debiting your account. It costs 0.3-1.5% of invoice value on top of standard charges. Covers insolvency, not trade disputes.
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Oliver Mackman
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 6 April 2026