Further evidence has emerged of the corrosive effect of late payments on small businesses. A recent survey by GoCardless has revealed that 57% of small business owners will either cancel holidays this summer or spending time while they are away on holiday chasing late payments.
The company surveyed 250 small businesses and nearly two thirds agreed that the summer vacations were the worst time for collecting payment, with a greater proportion of invoices being paid late at that time than at any other time of year. A fifth of business owners admitted to spending up to three full work days over summer trying to get paid by customers, while one in ten spent nine days on collecting payments.
Josh Sasto, head of partnerships at GoCardless said:
"SMEs are the lifeblood of the UK economy and itís not right for them to be denying themselves valuable time to recharge their batteries just to chase late payments. On time payment is a right, not a privilege."
Samantha White, CEO of My Credit Controllers said:
"The summer holiday season is certainly a challenging time for collections, with reluctant payers quick to use the excuse that the bank account signatory is off on vacations. Small business owners need their downtime just as much as anyone else, and should not be missing out on time with their families and friends. Why not look into outsourcing your credit control? Hand over your cares and head off to the beach knowing that My Credit Controllers have it all under control for you."
The findings come after the Federation of Small Businesses recently revealed that small businesses were owed £15bn in late payments and a further study that showed that small business owners are suffering health issues as a direct result of the stress and anxiety caused by late payment.
How we can Help: