A debt recovery Fintech is offering businesses free access to its collections platform till the end of the year to help them recover unpaid debts as recession looms.
The Debt Register platform, which helps businesses collect unpaid debts within seven days, on average, will be free for businesses of any size from small independent traders to FTSE 100 companies to extend a lifeline.
Debt Register hopes the move will enable businesses to stabilise their cashflow, which according to research by SME Loans was the principal cause of insolvency for 80% of UK businesses in 2020.
In addition to this, the data also showed 78% of businesses owed money are forced to wait over a month for payment, whilst 34% of SMEs are relying on overdrafts to pay their bills. Collectively, the sector as a result spent £4.4 billion in administrative costs chasing late payments.
Gary Brown, CEO of Debt Register, hopes the move will give businesses a way out of what could become a devasting time for the economy: “During COVID the UK saw a 14% increase in insolvencies, many of which were due to a lack of cash flow thanks to COVID restrictions,” he explains.
“Whilst a recession won’t halt business to such a degree, cashflow challenges will cripple thousands of businesses due to unpaid invoices. By removing fees from our platform, we hope, in some way, we can give businesses a tool to help mitigate the challenges and support their recession proofing strategies.”
Thanks to its built-in automation, Debt Register helps business owners cut down on the level of admin needed to chase debts, whilst also giving credit teams an effective consequence for non-payment. Firms that don’t pay their suppliers when the invoice is not in dispute are automatically reported to the credit reference agencies, impacting their credit file or report.
Business Advisor and former Interim Small Business Commissioner, Philip King, added: “Credit teams are under more pressure than ever before as businesses look to recover cash from wherever possible. The Debt Register platform gives teams a way to succeed at chasing debts rather than chasing tails and it’s helping to improve morale, which as recession looms is going to be a critical part of business success.”
The platform will be free to use until 31st of December 2022 and will allow users to load an unlimited number of debts within that period regardless of company, invoice size or geographical location of your debtor. For more information, please visit: https://debtregister.com/enterprise/
