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Invoice insurance from Hokodo, available on Tide on the web.
As part of our mission to help protect your cash flow, and save you time and money, weâve 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.
Available to limited companies who have filed up-to-date accounts with Companies House. Not yet available for Sole Traders.
Never considered insuring your invoices before? Hereâs why itâs a smart solution for many small business owners:
Your payment is guaranteed, even if your customer canât pay you (terms and conditions apply).
You pay per invoice so you only pay for what you need.
You decide which invoices to insure and youâre protected in just a few clicks.
Hokodo takes care of everything, including the hassle of trying to collect late payments.
We found the service very easy to use and useful.
It was definitely great to have the back up and know that weâd get paid if our client couldnât pay us during these trying times with COVID-19.
Joseph, J R Cleaning & Removals, Sheffield
Protecting your cash flow with Invoice Protection is easy.
Go to Invoicing
To help you decide which invoices to insure, youâll be able to see your customersâ credit scores. This is a measure of their financial health (5 stars = good financial health, 1 star = substantial risk).
You can insure invoices of up to ÂŁ22,000 (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.
If the collection fails, Hokodo will pay the protected amount (90% of the invoice value). Hokodo is backed by specialist insurers Lloydâs of London so you know your claim is in safe hands.
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
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 doesnât pay.
You will be protected against the non-payment of a valid invoice, either because your customer wonât pay or their business has become insolvent.
You wonât be protected against:
Any invoice you send to another business is eligible for Invoice Protection as long as:
If you only received verbal confirmation of the order, then you can still take our Invoice Protection. However, Hokodo wonât pay a claim for your invoice if your customer disputes having placed the order.
To take out Invoice Protection, youâll be asked to confirm that, to the best of your knowledge, your customer:
Hokodo doesnât expect you to do any further investigation of your customer’s solvency. However if, in carrying out your business, you discover itâs likely that your customer wonât be able to pay your invoice then you must not take out any further Invoice Protection on invoices to that customer.
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
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.
After you notify Hokodo about the non-payment of your invoice, the usual process is that Hokodoâs collections partner, STA International, will attempt to collect money for you. If STA achieve this, youâll 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, youâll 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.
Hokodoâs collections partner is STA International. They have deep industry expertise when it comes to collecting trade debt and theyâll manage the process of getting your debtor to pay.
After confirming the debt with you, theyâll contact the debtor by various channels including telephone, email and post. If this collections process succeeds, theyâll 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 canât collect the debt within 60 days, youâll 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.
Hokodo Services Limited is authorised by the Financial Conduct Authority as an Appointed Representative of Innovation Risk Limited. Hokodoâs Invoice Protection is underwritten by Lloydâs of London, the worldâs leading specialist insurance market, so you know your cover is in good hands.
Tide is about doing what you love. That’s why weâre trusted by 250,000+ UK businesses.