Help for firms as FSA finds banks guilty of misselling
Technology firm Powa Technologies has launched an app to help small firms reclaim money from their debtors to help with their cashflow.
Dan Wagner, chief executive of Powa Technologies said the launch was timely, as the FSA has found banks guilty of mis-selling specialist insurance products designed to protect small firms taking out loans against rising interest rates.
He said the FSA has been investigating the length of time over which the mis-selling took place and has been talking to roughly 100 businesses. The effect of rate rises is believed to have a severe effect on a number of small businesses; according to the FSA this could affect thousands of small firms across the UK.
Mr Wagner said: “It is appalling that small companies have been taken advantage of. Loans and bad debts are often the one single reason that small companies go out of business. We need to have more responsible lending and the products that surround those loans to help small businesses to survive and grow in difficult market conditions.”
To help small firms overcome cash flow problems, Powa Technologies has launched mPowa, a payment system that will enable small and medium companies in the UK to accept credit and debit card payments through their mobile phones.
It will help SMEs currently struggling with the effects of chasing debt as it will enable them to accept payments instantly as opposed to waiting for invoice payments. It also includes a mobile phone app and a reader which connects to a smartphone or mobile device either by plugging into its headphone socket or via Bluetooth.
The mobile app is free to download on iPhone, iPad, Android, Windows and Blackberry devices and functions as the control centre that accepts the payment. Receipts can be sent by email or SMS.
Mr Wagner added: “I am always speaking to businesses that squander valuable time chasing late payments because they were unable to take the money upfront in the first place.
“This problem is crippling companies who are already struggling in this difficult economic climate and many are having to close their doors because of this. mPowa will be an invaluable service for accepting payments whether the point of sale is the doorstep or the shop floor.”