Invoice Protection

Invoice insurance from Hokodo, available on Tide on the web.

Protect against non-payment

As part of our mission to help protect your cash flow, and save you time and money, we’ve teamed up with Hokodo to bring you Invoice Protection.

With Invoice Protection, you can cover your invoices and protect your business against the risk of non-payment.

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For limited companies

Available to limited companies who have filed up-to-date accounts with Companies House. Not yet available for Sole Traders.

Why insure your invoices?

Never considered insuring your invoices before? Here’s why it’s a smart solution for many small business owners:

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Protect against non-payment

Your payment is guaranteed, even if your customer can’t pay you (terms and conditions apply).

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No long-term commitment

You pay per invoice so you only pay for what you need.

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Easy to set up

You decide which invoices to insure and you’re protected in just a few clicks.

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No chasing unpaid invoices

Hokodo takes care of everything, including the hassle of trying to collect late payments.

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We found the service very easy to use and useful.

It was definitely great to have the back up and know that we’d get paid if our client couldn’t pay us during these trying times with COVID-19.

Joseph, J R Cleaning & Removals, Sheffield

How to insure an invoice with Tide

Protecting your cash flow with Invoice Protection is easy.

Log into Tide on the web

Go to Invoicing


Check your customers’ credit scores

To help you decide which invoices to insure, you’ll be able to see your customers’ credit scores. This is a measure of their financial health (5 stars = good financial health, 1 star = substantial risk).


Select an invoice and get a quote

You can insure invoices of up to £22,000 (excluding VAT). You can get a quote for a single invoice or several and typical costs are between 0.3% and 1% of the value of the invoice.
Hokodo will give you a quote in less than 30 seconds. If you accept the quote, Hokodo insures 90% of our invoice amount against non-payment from your customer.


Contact Hokodo if your invoice becomes 45 days overdue

  • If your invoice becomes overdue by 45 days, contact Hokodo at support@hokodo.co
  • You need to notify Hokodo within 30 days of the invoice becoming 45 days overdue (so that’s 75 days from the ‘payment due’ date on your invoice).
  • Hokodo will reply by email, explaining what to do. This is when you can instruct their debt collection service to step in to chase your customer.
  • The collections process usually takes 15 to 60 days.

Get paid

If the collection fails, Hokodo will pay the protected amount (90% of the invoice value). Hokodo is backed by specialist insurers Lloyd’s of London so you know your claim is in safe hands.


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Invoicing with Tide

Create, customise and send invoices, hassle-free, all from your Tide app.

No need to use a separate system, ideal for small businesses and free to all Tide members.

Read more about Invoicing with Tide


Invoice Protection FAQs

Should I use Invoice Protection? What other businesses use it?

A wide range of businesses insure invoices against non-payment – a customer not paying an invoice can happen to any business.

If a large part of your work is done with the same customer, or if some of your customers are new or not yet creditworthy, taking out Invoice Protection can safeguard your company in case your customer doesn’t pay.

What does Invoice Protection cover?

You will be protected against the non-payment of a valid invoice, either because your customer won’t pay or their business has become insolvent.

You won’t be protected against:

  • Non-payment of a disputed invoice
    You’ll need to settle the dispute with your customer before Hokodo will consider your claim.
  • Damage or loss of goods in transit
    If you need this cover, it should be covered by your normal business insurance policy.
  • Activity by a government which prevents your invoice being paid
    This means events such as war, requisition of a property, currency controls etc.
  • Fraud or dishonesty
    You’re not covered for claims which are the result of fraud or dishonesty by your company
  • Illegal claims
    You’re not covered for claims which would require Hokodo to breach sanctions or anti-money laundering regulations.

Which of my invoices are eligible for Invoice Protection?

Any invoice you send to another business is eligible for Invoice Protection as long as:

  • it’s a valid invoice
  • it isn’t too close to the due date
  • it was issued within 30 days of the supply of the goods and/or services
  • it’s supported by evidence that the customer confirmed the purchase
    This could be a purchase order, email confirmation or agreed contract.

If you only received verbal confirmation of the order, then you can still take our Invoice Protection. However, Hokodo won’t pay a claim for your invoice if your customer disputes having placed the order.

To take out Invoice Protection, you’ll be asked to confirm that, to the best of your knowledge, your customer:

  • is not insolvent
  • is able to pay the invoice at the time you buy the protection
  • does not have any other outstanding invoices with you which are over 45 days overdue.

Hokodo doesn’t expect you to do any further investigation of your customer’s solvency. However if, in carrying out your business, you discover it’s likely that your customer won’t be able to pay your invoice then you must not take out any further Invoice Protection on invoices to that customer.

Find out more about Invoice Protection and how it works.

Invoice protection is provided by Hokodo Services Limited, who are authorised by the Financial Conduct Authority as an Appointed Representative of Innovative Risk Ltd. Invoice Protection is available for eligible invoices. Hokodo assess invoice eligibility based on a range of factors including the identity of the buyer and how close the invoice is to its due date

Is the VAT on my invoice covered?

Invoice Protection covers 90% of the amount of your invoice, excluding the VAT.

If the invoice included VAT on top of the net amount, you can usually claim VAT Bad Debt Relief from HMRC. Find out more at the Government website:
Gov.uk | Guidance | Relief from VAT on bad debts

Who underwrites Tide’s Invoice Protection insurance?

Our Invoice Protection is arranged by our partner, Hokodo Services Ltd which is a coverholder at Lloyd’s of London. The policies are underwritten by Lloyd’s which is a specialist in insurance and reinsurance.

How long will it take for Hokodo to pay my claim?

After you notify Hokodo about the non-payment of your invoice, the usual process is that Hokodo’s collections partner, STA International, will attempt to collect money for you. If STA achieve this, you’ll get the amount they collected within 14 days of them receiving it. This collections process usually takes from 15 to 60 days.

If STA fails to collect money for you, you’ll be asked to fill in a claim form. Hokodo will pay you the amount covered – 90% of the invoice value – promptly when they get your valid claim form.

Hokodo aims to settle the majority of claims within 15 days of receiving a claim submission. However, a limited number of claims need more investigation and, in these situations, Hokodo may take up to 60 days to assess your claim.

How do Hokodo attempt to collect what I’m owed?

Hokodo’s collections partner is STA International. They have deep industry expertise when it comes to collecting trade debt and they’ll manage the process of getting your debtor to pay.

After confirming the debt with you, they’ll contact the debtor by various channels including telephone, email and post. If this collections process succeeds, they’ll pay you the amount they collect, minus their fee of 6% (+VAT) of the recovered money. You can allow them to also recover this success fee from your customer – this is generally allowed by law. In this case, there would be no fee taken off the amount you receive.

If STA can’t collect the debt within 60 days, you’ll be asked to fill in a claim form. Hokodo will pay you the protected amount – 90% of the invoice value – promptly when they get your valid claim form.

Hokodo aims to settle the majority of claims within 15 days of receiving a claim submission. However, a limited number of claims need more investigation and, in these situations, Hokodo may take up to 60 days to assess your claim.

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