What type of Insurance do I need?

Hi All,

This might sound silly, but i know what i am looking for exsists... i just do not know what it is called to search for it!!!

Here is the description:

When i send an invoice to a client they have a certain amount of time to pay. In the meanwhile, i still need to pay my employees. What i am looking for is the type of insurance (i was told it was insurance, not finance) that will give the money to my business for the purpose of paying wages and have it returned upon payment on the invoice. The usual practice is to receive about 75% of the invoice amount.

I know it is not GAP insurance(this seems to be just for cars), even though it sounds as if it should be and it is not invoice insurance either as that is only if the invoice is not paid at all.

If someone can please, help. I am trying to get my new business off the ground, but i can't do it without employees and employees must be paid!!

Thank you

P.S. I decided i have to post in the finance section too because this just seems so... financy


  • QuentinQuentin Forumite
    40.4K Posts
    An overdraft will do what you want

    And of course good credit control so you get paid on time!
  • tacpot12tacpot12 Forumite
    6.5K Posts
    Sixth Anniversary 1,000 Posts Name Dropper
    I'm not aware of an insurance that does this, but Invoice Factoring will generally return you 75% of the value of invoices. If you can get an overdraft and are certain you will be paid, this is cheaper than factoring.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • eddddyeddddy Forumite
    13.6K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    There is 'Trade Credit Insurance' (or 'Invoice Insurance') - but that's more about insuring against customers not paying you because they go bust etc. Although I think some combine invoice factoring, as you describe.

    But you and your customers will probably have to jump through many hoops to get credit insurance or invoice factoring.

    (Otherwise you could issue a fake invoice to your friend for £500k, get paid £400k by the factoring company, and then do a runner. And/or your friend let's their company go into receivership, leaving the insurer to pay the invoice.)
This discussion has been closed.
Latest MSE News and Guides