Tide and GoCardless sign invoice-chasing payments partnership for SMEs
Business banking platform Tide and payments firm GoCardless have signed a partnership focused on improving invoice processing.
The deal allows Tide members to collect invoice payments via Direct Debit. According to the bank, 60% of small and medium-sized enterprises (SMEs) regularly have their invoices paid late.
It argues that this phenomenon creates “a huge cash flow issue” which puts small businesses “in serious danger of collapse.”
According to Tide’s research, UK SMEs are chasing more than £50 billion in late payments. The average owed per invoice amounts to £8,500.
Pay.UK data claims that a quarter of SMEs are spending more than £500 month trying to secure late invoices. 63% of those affected say it has negatively impacted their business.
The collaboration between Tide and GoCardless is built on Direct Debit, both claim it to be “very simple to use”.
Tide members will be able to schedule the collection of payments from their customers when the invoice is due. It includes a tracking service to check the status of the payment.
GoCardless charges 1% plus 20p for UK transactions, capped at £4. If a transaction rises above £2,000, it applies an additional fee of 0.1% on the amount over £2,000.
“We are extremely excited to be working with GoCardless to provide such an important service to Tide members,” says Tide CEO Oliver Prill.
“Business owners should be spending time growing their businesses and building relationships with customers, rather than chasing them for payment.”
GoCardless CEO Hiroki Takeuchi says that taking the “pain” out of getting paid is “more important than ever in today’s economic climate”.