Tide and GoCardless team up to help small businesses get paid faster
Tide, the UK’s leading business banking platform has today announced a partnership with GoCardless, a global leader in recurring payments, to launch a service that will allow Tide members to collect invoice payments by Direct Debit.
The late payment of invoices is a well documented and recurring issue for small businesses. Recent research by Tide reveals that over 60% of small businesses regularly have invoices paid late, with almost 16% of those saying they regularly have invoices paid over four weeks late*. This creates a huge cash flow issue and puts small businesses in serious danger of collapse, particularly in the current turbulent climate. When it comes to failed payments 42% of small businesses say the biggest problem they pose is awkward conversations with customers, 29% citing the cash flow impact, and 27% the cost of recovering payments.
With this issue front of mind, Tide and GoCardless have collaborated to come up with an invoice payment service that gives small business owners control over when they are paid, helping them to get paid faster, as well as cutting the stress and wasted time out of chasing payments. On average, businesses get paid 47% faster with GoCardless according to IDC’s ‘The business value of taking recurring payments with GoCardless.’
The service, built on Direct Debit, is very simple to use, benefitting both the business owner and customer. Tide members will be able to schedule the collection of payments from their customers when the invoice is due and track the progress of these payments with low, per-transaction fees. Tide members’ customers will be protected by the Direct Debit guarantee.