UK’s digital, mobile-only challenger bank Starling Bank has partnered with Nimbla to protect its business customers against the financial fallout from bankrupt businesses.
The partnership will ensure that the 65,000 small business customers of Starling Bank still get paid when clients go bust.
Through Nimbla, Starling business customers can hedge against the threat of unpaid invoices by purchasing insurance that covers either single or multiple invoices.
Customers can access Nimbla through the bank’s in-app Marketplace after signing up for a free Nimbla account.
Apart from insurance, Nimbla also offers a free credit-checking tool to help customers better assess the financial risks of working with a new business partner or client.
Starling Bank founder and CEO Anne Boden said: “Just like Starling, Nimbla is a great example of a business that is disrupting an old industry model to create products that are relevant to the way we do business today. Nimbla is an excellent addition to our Marketplace that I’m proud to welcome into the fold.”
Small businesses are at greater risk of not getting paid with increasing bankruptcies. It is reported that 17,454 companies failed last year, representing a threat to the UK’s 5.7 million SMEs who owe billions in late payments.
Nimbla CEO Flemming Bengtsen said: “Hard-working SMEs deserve access to affordable, fast and flexible protection that will help them expand into new and existing markets, secure invoice funding and safeguard against insolvent customers.”
Starling Bank, which was established in 2014, secured a banking licence from the Bank of England in July 2016.
The bank launched its first mobile personal current account in May 2017 and the UK’s first digital business bank account in March 2018.