Hokodo partners with Tide
Tide, the London-based digital banking platform serving over 150,000 businesses, is partnering with invoice protection provider Hokodo to help SMEs protect their cash flow against the late and non-payment of invoices.
Hokodo, which recently announced a partnership with another digital platform serving small businesses, 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). In addition to being able to protect their invoices, Tide users will also benefit from 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.
“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 invoices, and give much-needed peace of mind.” – Amit Kahana, VP of Credit Services for Tide.
“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.” – Richard Thornton, cofounder at Hokodo.