Tide introduces Invoice Protection to help support SMEs
Tide, the UK’s business banking platform, has launched a new Invoice Protection product in partnership with insurance solutions provider Hokodo, to help micro, small and medium-sized businesses protect their cash flow against the late and non-payment of invoices.
The Coronavirus crisis is having an immediate and potentially long-term impact on the UK economy, and a serious knock-on impact on SMEs. The threat of increases in late payments, non-payments and insolvencies means small businesses are being put into a precarious position, whereby an unpaid invoice or late payment could leave them facing insolvency.
To combat this, Tide has teamed up with Hokodo to offer Invoice Protection to its members, helping to protect their businesses and deliver added income security. Invoice Protection will allow Tide members to protect their cash flow against uncertainty and guarantee the payment of invoices, even if the customer does not pay.
Hokodo takes care of debt collection on overdue invoices, and if the debts can’t be collected or the customer is insolvent, then Hokodo protects 90% of the invoice value. Members can choose which invoices they would like to protect, up to the value of £20,000, for a small fee (typically between 0.3% and 1% of the invoice value).
Boosting efficiency
In addition to being able to protect their invoices, Tide’s members will also benefit from additional insights into their customers’ financial health. Members will have the ability to assess risk, improve their credit decision-making, and have confidence in taking on new business in these uncertain times.
Amit Kahana, VP of Credit Services for Tide said: “We know that overdue invoices put a real strain on SMEs even at the best of times. Our research from late 2019 told us that UK SMEs are chasing a total of £50bn in late payments at any one time, and spend 1.5 hours per day chasing these invoices.
Considering the situation we are now in, it is more important than ever that small businesses are able to protect themselves as best they can. Invoice Protection will protect Tide members against the risk of non-payment of invoices, reduce the time wasted on chasing and give much-needed peace of mind.”
Richard Thornton, co-Founder at Hokodo added: “As the impact of Coronavirus continues to intensify, many SMEs will be worried about what the next few months will bring, whether they’ll receive payment, and whether they or their clients face the risk of insolvency. It is now more vital than ever that SMEs put the right measures in place to deal with any potential risks.
Invoice protection can help small businesses avoid financial distress and provide them with some peace of mind, particularly in times of crisis such as these, by guaranteeing payment of invoices. By partnering with Tide, we’re proud to be supporting SMEs and giving them the opportunity to protect their cash flow.”
Tide, the UK’s business banking platform, has launched a new Invoice Protection product in partnership with insurance solutions provider Hokodo, to help micro, small and medium-sized businesses protect their cash flow against the late and non-payment of invoices. The Coronavirus crisis is having an immediate and potentially long-term impact on…
