Debt collection fintech to lower fees to help businesses claw back cash in recession
LONDON, UNITED KINGDOM, Nov. 2, 2022 /EINPresswire.com/ — A debt collection fintech is offering companies free access to its collections platform until the end of the year to help them collect unpaid debts as recession looms.
The Debt Register platform, which helps businesses collect overdue debts within seven days, on average, will be free for businesses of all sizes, from small sole traders to FTSE 100 companies, to extend a lifeline .
Debt Register hopes the move will help businesses stabilize their cash flow, which research by SME Loans found was the main cause of insolvency for 80% of UK businesses in 2020.
On top of that, the data also showed that 78% of businesses that owed money are forced to wait more than a month for payment, while 34% of SMEs rely on overdrafts to pay their bills. Collectively, the sector therefore spent £4.4 billion in administrative costs to pursue late payments.
Gary Brown, CEO of Debt Register, hopes the move will give companies a way out of what could become a devastating time for the economy: “During COVID, the UK has seen a 14% increase in insolvencies, many of which were due to cash flow thanks to COVID restrictions,” he explains.
“While a recession won’t shut down business to such a degree, cash flow issues will cripple thousands of businesses due to unpaid invoices. By removing fees from our platform, we hope, in some way, that we can give businesses a tool to help mitigate challenges and support their recession-proof strategies.
With its built-in automation, Debt Register helps business owners reduce the level of administration needed to chase debts, while giving credit teams effective action on non-payment. Businesses that do not pay their suppliers when the invoice is not disputed are automatically reported to credit reference agencies, which impacts their credit file or report.
Trade adviser and former acting Small Business Commissioner Philip King added: “Credit teams are under more pressure than ever as businesses seek to recover cash where possible. The Deb Register platform gives teams a way to succeed in chasing debt rather than chasing tails and it helps boost morale, which as the recession looms is going to be a critical part of the success of the company.
The platform will be free until December 31, 2022 and will allow users to charge an unlimited number of debts during this period, regardless of the company, the amount of the invoice or the geographical location of your debtor. For more information, please visit: https://debtregister.com/enterprise/
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