IT recruiter Concept Information Technology has managed to safeguard against bad debt using a debtor protection policy from Lloyds TSB Commercial Finance.

The firm, which recorded a turnover of £5.8m this year, up from £3.4m in 2008, was faced with significant outstanding debt when one of its customers became insolvent, but had put into place a debtor protection policy with Lloyds TSB Commercial Finance in 2007.

The firm received payment within 30 days of its client filing for administration from Lloyds TSB Commercial Finance.
 
Chris Short, managing director of Concept IT, says: “Taking out a debtor protection policy has provided us with long-term peace of mind and has ensured that we’ve been safeguarded against bad debts.

“Knowing that our working capital is protected has enabled us to continue our growth strategy and expand our client base further without fear of future failures – something that has helped us to achieve record turnover despite the tough economic climate.”

Alex Fiddian, client manager for Lloyds TSB Commercial Finance, adds: “It takes only one bad debt to significantly impact a business’ cash flow. We are seeing more and more of our customers use debtor protection policies as a safety net to protect themselves from defaults.”