Here is a list of most frequently asked questions about Debtor Insurance. If you can't find the answer to your question here don't hesitate to get in touch with a member of the team who'll be more than happy to help you.
What happens if I can't get cover on my customers?
If we are unable to provide cover at least 55% of your insurable ledger within 30 days of signing the policy document then we will, if requested, cancel the policy and refund premium paid. All we ask is that you contact us and discuss your concerns.
Am I locked into the policy?
No. You can terminate the policy by giving 30 days notice.
What if you cancel a limit on my customer?
Upon receipt by you or on the 5th day after notification of any limit reduction, any invoices outstanding at this point will continue to be covered up to the value of the limit, subject to the policy terms and conditions.
What if I need to speak to someone about my policy?
You can call us on 0800 587 5180, between 8:30 and 5:30, Monday to Friday on any business day. If the line is busy or outside these hours you will be directed to voice mail. We promise to call you back once an operator is free and in any case by 10:00am on the next business day. You can also email us on debtor.insurance@ltsbcf.co.uk and ask us to call you.
If my business grows will I have to pay more?
We will not charge you any additional premium should your business grow up to 20% more than the turnover you estimated at the commencement of the facility (up to a maximum of £500k). We will use the actual turnover achieved in the last year to calculate premium payable in the forthcoming year. Whatever happens we will always discuss premium and charges with you.
I sell to local government, will I be charged for this turnover?
No. Any government debt including government departments, local authorities and schools are excluded and you need to tell us what value you estimate this to be. We will ask you to confirm the actual sales at year end.
I am sometimes asked to give extended terms of payment, what should I do?
You may grant one extension of the due date, provided that this period does not exceed 60 days to an existing customer, if you give longer than your usual terms to a new customer, please contact us before you commiting.
What is the difference between Debtor Insurance and Trade Credit Insurance?
There is no difference; Trade Credit Insurance is an alternative term for Debtor Insurance.
What if my customers are all overseas?
Our Debtor Insurance facility covers both Domestic UK trade and overseas debtors. We can offer cover on a 100% export basis.
How long will it take for my claim to be paid?
Insolvency claims will typically be paid within 30 days of our receipt of Confirmation of Debt from the Liquidator or Insolvency Practitioner. Claims made under Protracted Default will be paid within 30 days should you have received a County Court Judgement against the debtor.
Can I cover invoices outstanding prior to be signing up to Debtor Insurance?
Should you sign up to a Debtor Insurance facility before the 24th of any given month, then the facility will be backdated to cover all invoices raised from the 1st working day of that month. Should you sign up after the 24th, the facility will commence from the 1st of the following month.
Can I pick and choose the Debtors I want to insure?
No. Debtor Insurance is a whole turnover agreement so you would apply for cover on all of your Debtors.
Can I cover private individuals?
No. Debtor Insurance covers only credit sales to other businesses.
How long does it take for you to advise what cover is available on my customers?
Credit limit decisions can be granted automatically by our on-line system. However, should your request need to be looked at manually by a Trade Credit underwriter, you will have a decision within a maximum of 48 hours.