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Simon Adcock

12 Nov 2018

Satago – changing debt management for SMEs

By Commercial Director, Simon Adcock. Originally featured in Business Money October Edition.

So, what is Satago? Satago is a flexible invoice finance, credit risk management and credit control platform that has been designed to help businesses get paid on time - every time. By providing invoice finance Satago bridges your cashflow gaps, allowing you to focus on growing your business. Satago is an acredited partner with market leaders in the world of accountancy and cloud accounting software. 

The problem we are trying to solve

A study conducted by the British Business Bank shows that 27% of smaller firms don’t get the finance they want, so where do they go after that? Many, unfortunately, scale back their growth plans; but this doesn’t always have to be the case.

Sinead McHale, CEO at Satago, commented: “We’ve seen that, when provided with flexible finance options, SMEs are able to grow and thrive rather than buckling under the pressure of managing limited cashflow.”

By offering selective invoice finance to SMEs we want to help release tied up working capital so that it can be invested in growth. This capital release can also help businesses with cashflow, especially when they have long credit terms. This can happen when providing goods and services to large companies. Forbes noted that the reason 29% of start-ups fail is due to limited cashflow, so even if they have a full book of orders they may be unable to complete due to a lack of available funds.

The second problem we have recognised is that managing a debtor book places a large strain on a small business, especially when they have limited resources. The products we offer to help manage this problem are free to use, with no obligation to finance invoices.

SMEs are the backbone of the British economy, and we want to make sure that they have to ability to efficiently manage their cashflow and debtor book.

How do we do this?

Satago offers a range of tools to help achieve the above goal, resulting in a platform that offers an all-in-one cashflow solution.

These tools are automated through one-click integration with their cloud and desktop accounting solutions.

Free risk insights

By checking the credit report of any customers you deal with, you avoid any nasty surprises. This empowers your decision making of who to work with and whether you offer credit terms and for what duration.

By connecting with your accounting software you can easily review a customer’s risk profile, which shows their outstanding balance versus their credit limit. Your customers’ credit ratings could change suddenly, which could affect your decision making. Keep informed about any changes with our monitoring and alerting tool. Other features:

- The free-of-costs risk insight tools help minimise bad debt exposure by helping you understand the risk profile of who you are dealing with.
- Automated risk analysis empowers you to make informed trading decisions and helps minimise bad debt exposure.
- Ongoing live analysis of your debtor book.

Credit control tool

Our free credit control tool automates payment reminder e-mails and helps you easily manage your unpaid invoices. You can customise reminders and configure automated rules to send reminder e-mails that escalate in tone as invoices become more overdue. You have control of these e-mails and can decide when you want reminders to be sent; Satago does all the admin work for you. Easily look at any correspondence and manage communication for each of your customers centrally using either Satago or your own mailbox. Other features:

- Set up automated payment reminders and statements for your customers.
- Track all credit control activities in a centralised location and easily chase your unpaid invoices.
- Remove the admin burden of manually managing your debtor book, so you can concentrate on the business functions that really matter to you.

Invoice finance

A cashflow solution that helps you focus on growing your business rather than waiting for invoices to be paid, you can select individual invoices with transparent pricing. This service is available for UK private limited businesses, selling products to other UK businesses on credit terms.

We advance up to 85% of the value of the invoice and apply a single, low-cost fee on the amount you are funded. There are no hidden costs associated with our invoice financing.

- Finance a single invoice up to £500,000.
- Advance up to 85% of the invoice in less than 24 hours.
- Rates as low as 1% per 30 days.
- One competitive and transparent fee per invoice.
- No long-term contracts.
- No debentures or personal guarantees.