Fintech helps SMEs combat overdues for free
Small businesses are being given free access to a new digital payment platform to help them get outstanding debts paid more quickly.
Debt Register is giving all SMEs in the country the opportunity to load and collect up to five free outstanding debts every year by using its platform which it claims can resolve debts anything up to 10 times faster than ‘traditional’ legal action and without the unnecessary cost.
Businesses simply log onto the Fintech platform using one of their five free credits and the system takes over. It automatically contacts their debtor and in the appropriate language and time of day, requesting that the payment is settled, and ensuring the invoice is correct and not in dispute.
Should the debtor not respond or payment is not immediately forthcoming, the matter is reported to the Credit Reference Agencies (CRAs) and the debtor’s credit score negatively impacted. It is this ‘consequence’ that provides the leverage for an outstanding debt to be addressed, and on launch, initial data shows 80% of debtors engaged through the platform paid their clients directly within seven days.
Gary Brown, Founder of Debt Register, said the product and platform were created out of necessity: “SMEs often don’t have the luxury of time or a dedicated team to chase debts and they can quickly become overdue. Whereas some might eventually try to legal action, its time-consuming and costly, and outcomes are difficult to predict.
“With the accelerated payment platform we have developed, we hope to play our part in helping SMEs get paid for the work or services provided, and keep the cash flowing.”