Countingup, a small business banking and accounting app, has partnered with Hokodo to launch insurance for unpaid invoices.
The agreement is the first in the UK to be between a small business-focused insurance firm and an accounting company to give UK SMEs the option to protect their invoice incomes.
By working together, Hokodo’s Invoice Protection tool will let business owners quickly and easily request a quote to ensure their business-critical invoices are covered. Clients can identify individual invoices they want protected and purchase and pay for insurance through a tick box process.
Countingup has already established a link to the Hokodo solution within its app, and both companies are working on integrating their solutions even further to improve customer experiences. The cost of coverage is typically between 0.25 – 1.5 per cent of the overall value of the invoice.
The deal was struck to help small businesses lower risks of late invoice repayments, with the Federation of Small Businesses estimating late payments cause nearly 50,000 closures each year and costing the economy around £2.4bn.
Countingup founder and CEO Tim Fouracre said, “We are strongly focused on forming business partnerships that will help our core customer base of entrepreneurs and small businesses thrive. Invoice protection insurance such as that offered by Hokodo, fits well with our focus.
“Hokodo’s solution is key in protecting the most vulnerable small business owners from running into cash flow problems through missed or late payments. We are delighted to be working with them to help stop that happening to entrepreneurs.”
Last year, Hokodo closed a seed funding round on €1.9m with Anthemis supplying the capital to the InsurTech. Funds are being used by the London -based startup to develop its technology, build new APIs and launch new insurance products.
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