02 October 2019: Graindex, the UK’s number one online grain marketplace, has today announced a new partnership with B2B Buy Now, Pay Later provider Hokodo, to protect farmers from financial losses when trading.
Over 20% of SME insolvencies are caused by the late or non-payment of invoices. The new partnership will seek to protect farmers from these risks, creating a ‘Guaranteed Payment Collection’ service to protect sales made through Graindex, as trades take place. If the buyer does not settle a guaranteed transaction on time, then Graindex calls on Hokodo’s debt collection service to collect the debt. If the debt collection fails, then Graindex stands as guarantor, settling the debt on the buyer’s behalf, while being reinsured via Hokodo in the background.
Dave Rose, Managing Director of Graindex comments: “Our biggest priorities are eliminating wasted costs, time and produce, as well as making sure everyone gets a fair deal.
“By working together, Hokodo and Graindex have created a unique product that gives farmers the peace of mind that they will be paid when selling their crops. Farmers can now securely deal with a wider group of approved buyers without complicated forms, meaning they can focus on getting the best price for their crops. Our experience working with the Hokodo team has been excellent – we can now offer our Guaranteed Payment Collection service through access to their innovative technology”.
Richard Thornton, Hokodo’s co-founder and co-CEO, adds: “Payment protection can help farmers avoid financial distress, reduce wasted stock, and take the pressure off routine transactions. Hokodo already works for SMEs throughout the UK. By partnering with the forward-thinking and dynamic team at Hectare Agritech and Graindex, we’re proud to be helping farmers protect their cash flow.”
Hokodo’s products, underwritten and distributed using Hokodo’s technology, are backed by Lloyd’s of London via the Channel Syndicate, a unit of SCOR SE. In the UK, Hokodo is a Lloyd’s coverholder, authorised by the Financial Conduct Authority as an Appointed Representative of Innovative Risk Ltd.