Two million small businesses in Britain encounter delays in payment receipts
Struggling Small Businesses Face High Late Payment Rates
In a concerning development, Terry Corby, the Founder and CEO of Good Business Pays, has expressed his worry over the high percentage of late payments affecting Small and Medium-sized Enterprises (SMEs) in the UK.
According to research by Payit, NatWest's open banking payments solution, over a quarter (27%) of British SMEs are owed between £5,000 and £20,000 in unpaid invoices. This issue has led to the failure of 50,000 small businesses each year, a problem that Good Business Pays was founded to combat in late 2020.
Payit offers a simple and fast means of collecting money from customers without businesses needing to ask for, and store, card details. Its QR code feature enables immediate and direct sharing of payments with customers. The platform, supported by Open Banking technology, allows for near-real-time payments, making it a widely used tool for business owners.
SMEs account for nearly two thirds (61%) of UK employment and form the backbone of the economy. Unfortunately, over half (55%) of SMEs say that late payments have increased in the last six months. This trend is particularly prevalent in London, where businesses have the highest rate of late payments, with 41% of payments coming late.
The time spent chasing invoices has the most noticeable impact on nearly half (46%) of small businesses. Cashflow issues are the other major impact felt as a result of late payments, with 44% of businesses stating it as the most pressing issue.
Terry Corby, in his efforts to combat this issue, founded the "Late Payment of Small and Medium Enterprises (SMEs) Taskforce" in 2020. He emphasizes the need for companies to pay on time, especially during the festive period, and advocates for recognizing the importance of SMEs, as they are not just businesses but also peoples' lives.
Mike Elliff, CEO of Payit by NatWest, also emphasizes the importance of reliable payments for small businesses. Over half (55%) of SMEs are paid by bank transfer, while a third (33%) are paid by card.
Good Business Pays offers free resources and insights on their website (www.goodbusinesspays.com) to help businesses navigate this challenging landscape. For those interested in exploring a more streamlined payment solution, Payit's services may prove invaluable.
Read also:
- Potential Consequences of Dismantling FEMA Vary Across States
- Railway line in Bavaria threatened by unstable slope - extensive construction site at risk
- Wind Farm Controversy on the Boundary of Laois and Kilkenny
- Puerto Rico's Climate Lawfare Campaign experiences another setback with the dismissal of its deals.
