"Hokodo’s solution is key in protecting the most vulnerable small business owners from running into cash flow problems through missed or late payments."
Small business banking and accounting app, Countingup, has partnered with fintech start-up and insurance solutions provider, Hokodo, to lessen the risk faced by SMEs from late payments and unpaid invoices.
The partnership will give SMEs the option to protect their income on an invoice-by-invoice basis.
Using Hokodo’s invoice protection tool, business owners can quickly and easily request a quote to ensure their highest and most business-critical invoices are covered, identify individual invoices they want to protect, and purchase and pay for insuring them through a tick box process.
Countingup has already established a link to the Hokodo solution within its app. The two partners are now working on integrating their solutions more closely to further streamline the experience for users.
The Federation of Small Businesses estimates that late payment cause as many as 50,000 company closures a year at an annual cost to the economy of £2.4bn.
Tim Fouracre, founder and CEO of Countingup, said: “We are strongly focused on forming business partnerships that will help our core customer base of entrepreneurs and small businesses thrive. Invoice protection insurance such as that offered by Hokodo, fits well with our focus. Hokodo’s solution is key in protecting the most vulnerable small business owners from running into cash flow problems through missed or late payments. We are delighted to be working with them to help stop that happening to entrepreneurs.”
Richard Thornton, co-founder of Hokodo, added: “The traditional insurance industry has commercial products to address this problem. Historically, it has effectively excluded small businesses from the market by basing credit insurance on expensive “whole turnover policies”, and selling via channels such as brokers that are largely inaccessible to SMEs. Our credit insurance solution addresses this and partnering with Countingup will help us deliver this opportunity to more small business owners.”