Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

    • lindsayahmad
    • By lindsayahmad 9th Aug 18, 11:08 AM
    • 1Posts
    • 0Thanks
    What type of Insurance do I need?
    • #1
    • 9th Aug 18, 11:08 AM
    What type of Insurance do I need? 9th Aug 18 at 11:08 AM
    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
Page 1
    • Quentin
    • By Quentin 9th Aug 18, 11:35 AM
    • 38,228 Posts
    • 22,234 Thanks
    • #2
    • 9th Aug 18, 11:35 AM
    • #2
    • 9th Aug 18, 11:35 AM
    An overdraft will do what you want

    And of course good credit control so you get paid on time!
    • tacpot12
    • By tacpot12 9th Aug 18, 11:41 AM
    • 2,075 Posts
    • 1,771 Thanks
    • #3
    • 9th Aug 18, 11:41 AM
    • #3
    • 9th Aug 18, 11:41 AM
    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.
    • eddddy
    • By eddddy 9th Aug 18, 5:32 PM
    • 7,453 Posts
    • 7,481 Thanks
    • #4
    • 9th Aug 18, 5:32 PM
    • #4
    • 9th Aug 18, 5:32 PM
    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.)
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,084Posts Today

8,738Users online

Martin's Twitter