UK-based challenger bank Tide announced on Thursday it has teamed up with insurance solutions provider Hokodo to launch new invoice protection product for SMEs during the COVID-19 pandemic. According to the duo, this new Invoice Protection product will members to protect their businesses and 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).”
Tide further noted that its 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. Speaking about the partnership, Amit Kahana, VP of Credit Services for Tide, stated:
“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.”
Richard Thornton, Co-Founder at Hokodo, added:
“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.”