Using lawtech to tackle the £23bn SME late payment crisis

Small and medium size businesses are poorly served by the legal system. We sought at LawtechUK to address this, and demonstrate how technology could be deployed to tackle one of the biggest legal and existential issues for SMEs - late payment debt. UK SME late payment debt currently sits at £23bn, leaving each business chasing an average of £25,000 at any one time and causing high anxiety and ill health.

Our feasibility study and proof of concept undertaken with an expert consortium, demonstrated the innovation available within the legal system and how the process of engaging with the law can be convenient, low cost and non-adversarial, enabling SMEs to preserve vital relationships, and get back to business quickly.

The proof of concept platform is now being explored for development by a number of industry players, with the opportunity for government to make available state accreditation and integration with the court system, subject to the application of certain standards.