- 30 Jan
Pulse On Protecting Against Carillion Bad Debts
I had an email from Pulse Cashflow Finance, one of our funding panel, that I thought raised a great point about the recent failure of Carillion. Their clients will not be suffering any bad debts.
They have included "bad debt protection" for all of their clients, including those operating within the construction sector, meaning that their clients are protected from taking a bad debt.
OK, so it was Carillion this time, but next time it could any other large construction sector company that you are dealing with - if you would like to find out how they can help your business with both cash flow and protection from customer failures, please request a call back from Pulse Cashflow Finance.
This was the email that they sent, and kindly agreed that I could publish:
"Why Pulse Cashflow clients affected by Carillion’s demise will not suffer any losses
When Carillion the multinational facilities management and construction services company announced it was to go into liquidation, threatening thousands of jobs, the ripple effect spread far and wide across the UK business sector.
With business interests in so many diverse industries from major public-sector construction projects to managing schools and prisons as well as maintaining rail networks the damage that their estimated £800m of debts could cause to business and the UK economy is hugely concerning.
For it is not just Carillion and their employees who will bear the brunt of this company failure, it will be the thousands of SMEs and their staff who either supply or buy services from Carillion that will find themselves at risk of damage by this high-profile failure.
Despite this, Pulse Cashflow are pleased that they have been able to reassure their clients who are directly affected by Carillion’s demise that they will not suffer any financial impact to their businesses. This is because they will benefit from the inclusive bad debt protection Pulse Cashflow offer with their finance solutions. For those clients using Pulse’s funding solutions, monies owed to them by either Carillion or other businesses across Carillion’s wider supply chain will be recovered through Pulse’s bad debt protection. Pulse Cashflow have also committed to supporting any of their clients who may be affected by the fallout throughout Carillion’s supply chain.
Toni Dare, managing director of Pulse Cashflow says: “There are thousands of small firms the length and breadth of the country, in almost every industry, that carry out work on Carillion's behalf - many with real concerns about whether they will be now get paid and if they don’t what damage that is going to do to their businesses. Pulse Cashflow are committed to supporting businesses through good times as well as bad and will continue to work hard to support any business feeling the full force of Carillion’s demise. We are pleased that our clients have benefitted from our facilities being fully inclusive of Bad Debt Protection to safeguard their businesses in situations like this.”