Debt Recovery Fintech Drops Fees to Help Businesses Recover Cash Amid Recession
LONDON, 9 November 2022 /PRNewswire/ — A debt recovery fintech is offering businesses free access to its debt collection platform until the end of the year to help them collect unpaid debts as the recession approaches.
The Debt Register platform, which helps businesses collect unpaid debts within seven days on average, will be free for businesses of all sizes from small independent traders to FTSE 100 companies to extend a lifeline.
Debt Register hopes the move will enable businesses to stabilize cash flow, which according to research by SME Loans was the main cause of insolvency for 80% of UK businesses in 2020.
In addition, the data showed that 78% of businesses that owe money are forced to wait over a month for payment, while 34% of SMEs rely on overdrafts to pay bills. As a result, the sector spent £4.4 billion in administrative costs chasing payments.
Gary Brownchief executive of Debt Register, hopes the move will give businesses a way out of what could be a devastating time for the economy: “During COVID, the UK saw a 14% rise in insolvencies, many due to a lack of cash flow thanks to COVID restrictions,” he explains.
“While a recession will not halt business to such an extent, cash flow challenges will cripple thousands of businesses due to unpaid invoices. By removing fees from our platform, we somehow hope to give businesses a tool to reduce challenging and supporting their recession-proof strategies.”
Thanks to automation, Debt Register helps business owners cut down on the level of administration needed to chase debts, while providing credit teams with an effective consequence for non-payment. Businesses that do not pay their suppliers when the invoice is not disputed are automatically reported to the credit reference agencies, affecting their credit file or report.
Business adviser and former temporary small business commissioner, Philip Kingadded: “Credit teams are under more pressure than ever before as businesses look to recover money wherever possible. The Deb Register platform gives teams a way to successfully chase debt rather than chasing tails, and it helps improve morale, which is a slump. looms are going to be a critical partial success.”
The platform will be free to use until 31St of December 2022 and will allow users to load an unlimited number of debts. For more information, please visit: https://debtregister.com/enterprise/
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