Getting paid by Insurance
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How the Payout Process Works
When an insured invoice becomes overdue, GFTM manages the full recovery and claims process on behalf of the supplier.
As soon as the invoice is raised, our automated platform will contact the customer to let them know the payment date. More importantly we offer a portal to allow them to register any concerns or complaints regarding the goods or services they have received.
It is important to establish that there are no disputes or issues over the invoice, as these may not be covered by insurance. By nipping this in the bud and flushing out any potential disputes we can save time and energy if the invoice is subsequently not paid.
Two Way Communication
We will keep in regular contact with the end customer and you for any invoice that remains unpaid.
Once the invoice has reached its due date, we will increase our efforts to have the invoice paid, and will liaise with you on what you would like to happen.
At the end of 30 days after the due date, we can hand the invoice over to the insurer’s debt collection unit.
Professional Debt Recovery
Once the debt has been passed on to the insurance company, there will be a further 30 days, if the balance remains unpaid, the case is escalated to legal recovery under the policy framework and the claim is confirmed for payout.
Claim payout
The insurer pays 90% of the insured net invoice value into a ring-fenced trust for the benefit of the supplier. The remaining 10% represents the policy excess / uninsured portion.
VAT treatment
VAT is not included in the insured amount. Where the invoice remains unpaid, the supplier may normally seek VAT relief under the UK Bad Debt Relief rules (subject to HMRC eligibility requirements). Any VAT recovered or later repaid sits outside the insurance payout.
The process gives you clarity on timelines, recovery escalation and payout expectations, while ensuring that collections and legal action are managed in a consistent, policy-compliant way.