ANNOUNCEMENT - Satago Offers Invoice Finance with Bad Debt Protection via Partnership with Nimbla
UK businesses will now have access to invoice finance combined with protection against customer insolvency thanks to a tie-up between Satago and Nimbla. Protecting against the major risk of customer insolvency, allows small businesses to better manage risk and grow.
Satago and Nimbla have signed a deal through which Satago will offer bad debt protection. It will allow businesses to finance a customer invoice and at the same time protect themselves against that invoice turning into a bad debt if the customer becomes insolvent.
“Both Satago and Nimbla are addressing the problem of helping SMEs to manage risk in an uncertain business environment,” said Sinead McHale, CEO of Satago. “Working together, we can offer an even more attractive solution for smaller businesses combining finance with insolvency protection.”
Thousands of companies go out of business each year in the UK due to late or non-payment by their customers; UK small businesses owners wrote off £5.8bn in bad debt during, the last financial year, while the Federation of Small Business estimates that as many as 50,000 small business fail every year due to late payment by large companies. Recent major corporate administrations include Carillion, Patisserie Valerie, House of Fraser and Oddbins, highlighting the significant risk that customer insolvency poses to smaller businesses. When Carillion collapsed in January 2018, it owed £2 billion to 30,000 suppliers.
“In this uncertain environment, it’s clear that household names are not immune to collapse, and small businesses need to protect themselves,” says Flemming Bengtsen, CEO of Nimbla, “That’s why we have partnered with Satago to offer a simple, single-invoice product providing bad debt protection on small business owners’ financed invoices.”
The new, bad debt protection product will be offered to all existing and new Satago clients, through a one-click process on the Satago platform.