Executive Summary
Late payments and aged debts are significant challenges for UK SMEs, impacting cash flow and business sustainability. RAIMAC introduces a programmable payments infrastructure designed to automate and simplify the debt recovery process, enabling SMEs to manage aged debts efficiently without resorting to credit extensions or complex terms.
Introduction: The B2B Aged Debt Landscape
UK SMEs are grappling with increasing levels of aged debt. According to Bibby Financial Services, 40% of SMEs have suffered a bad debt due to customer nonpayment in the last 12 months, with the average value written off doubling to £39,847. Late payments have surged, with the average SME owed £96,772 in overdue invoices, a 48% increase in 2024.
These challenges are compounded by:
- Administrative errors and disputed invoices causing payment delays.
- Time-consuming manual debt recovery processes.
- Strained customer relationships due to aggressive collection tactics.
The RAIMAC Solution: Programmable Payments for B2B Debt Recovery
RAIMAC offers a programmable payments infrastructure tailored for B2B debt recovery, enabling SMEs to:
- Automate Payment Plans: Set up structured, rule-based repayment schedules aligned with debtor cash flows.
- Enhance Transparency: Provide real-time visibility into payment statuses for both creditors and debtors.
- Maintain Customer Relationships: Implement compassionate collection strategies that preserve business relationships.
Key Features:
- Customizable Instalment Engine: Allows SMEs to create flexible repayment plans without extending credit.
- Smart Workflow Automation: Triggers actions based on payment events, reducing manual intervention.
- Real-Time Reporting: Offers up-to-date insights into debt recovery progress.
- Secure API Integration: Seamlessly connects with existing accounting and CRM systems.
Use Cases
- Professional Services: Automate collection of overdue invoices from clients with minimal disruption.
- Wholesale Suppliers: Implement structured repayment plans for retailers facing cash flow issues.
- Manufacturing Firms: Manage aged debts from distributors through transparent payment schedules.
Benefits for SMEs
- Improved Cash Flow: Accelerate recovery of aged debts without resorting to external financing.
- Operational Efficiency: Reduce time and resources spent on manual debt collection processes.
- Customer Retention: Maintain positive relationships by offering flexible repayment options.
- Regulatory Compliance: Ensure adherence to fair collection practices.
Why Now?
The current economic climate, marked by increased late payments and rising bad debts, necessitates innovative solutions for debt recovery. RAIMAC’s programmable payments infrastructure provides SMEs with the tools to manage aged debts effectively, preserving cash flow and customer relationships without the need for credit extensions or complex terms.
About RAIMAC
RAIMAC is a financial technology company dedicated to modernizing B2B payments through automation, transparency, and smart payment technology. Our solutions empower SMEs to manage aged debts efficiently, fostering sustainable business growth.
Contact Us
To learn more or schedule a demo, contact us at [email protected] or visit raimac.io.
For further insights into programmable payments, refer to our 101 Guide to Programmable Payments.
