You revealed in a recent study that 31% of SMEs have experienced late payments, costing their business at least £10,000 in the last 12 months. How does Hitachi Capital plan to alleviate this issue?

It is interesting that despite late payment penalty fees, the prompt payment code and numerous uncomplimentary media stories around this subject, late payment remains a significant problem. So, the appointment of Phillip King as the new interim small business commissioner is a welcome development. Alongside our standard invoice finance solution, which effectively bridges this gap, we also provide tips and guidance promoting effective credit management. Vigorous processes around procurement and invoicing reduces the queries and disputes we regularly see in the payment cycle, leading to shorter payment cycles.

What one change do you feel is essential to happen within the industry?

Lenders need to make client experience as simple and fast as possible, which is why we launched FLi , our digital onboarding process. Despite being a straightforward process for SMEs to quickly boost their cash flow, reasonable estimates speculate that the potential invoice finance market is 10 times bigger than the current number of users. By building innovative credit underwriting solutions, invoice finance providers will be more attractive to help SMEs maintain liquidity.

How do you predict the industry will change in the near future, given the current political climate?

We have seen a prolonged period of uncertainty, particularly within the political environment, now partially resolved following a clear election result . However, until we have a firm idea over our future trading relationships with Europe, I think it is difficult to predict how our industry will evolve. It is safe to say, however, that AI-powered technology will continue to drive customer behaviour and expectation, but I think those lenders who still value strong relationships will continue to thrive.

How did you get into the industry?

As with many of my peers, I came into this industry by pure accident following on from an earlier career in banking. There is nothing better than sitting with an SME owner talking about their business, their plans and their successes, and identifying how we can support them.

If you didn’t work in finance, what would you be doing?

There are so many things to choose from. I have always liked doing very different things, so probably something like archaeology!

An interview with Andy Dodd: 'Lenders need to make client experience as simple and fast as possible'

By Andreea Dulgheru

7 February 2020

In an interview with Bridging & Commercial, Andy Dodd, managing director at Hitachi Capital Invoice Finance (pictured above) discusses solutions for SMEs regarding late payments, and how creating innovative credit underwriting solutions will make invoice finance providers more attractive to business

Section: Interviews

Source: Bridging & Commercial — https://bridgingandcommercial.co.uk/an-interview-with-andy-dodd-lenders-need-to-make-client-experience-as-simple-and-fast-as-possible