Lloyds has set up a programme intended to help the owners of small to medium-sized enterprises (SMEs) protect themselves against bad debts, in light of predictions warning that insolvencies are to reach record highs.
Managing director of the company’s commercial finance department Simon Featherstone stated that the scheme was initiated as a result of increased demand for a safety net from SMEs.
“One bad debt can have a dramatic effect on a firm’s balance sheet and wipe out years of hard work,” he said.
The service, which involves credit monitoring so that businesses can identify potential risks sooner, is available on the internet to Lloyds customers, as well as to those operating outside the organisation.
Last month, Amer Sajed of Barclaycard UK recommended that debtors consider handling their financial affairs online, in order to make debt management more simple and efficient, particularly important following the recent postal strikes that have seen many people incur fines and late payment fees.
By Sarah Adie