Are you an SME affected by late payments?

Late payments are the leading cause of cash flow problems for UK small and medium-sized enterprises (SMEs), according to 41% of business owners.

Managing bill payments is a challenge for 32%, while 21% struggle with access to emergency funds. These insights come from research conducted by Allstar, a leading provider of business, EV, and fuel expense payment solutions, which examined the financial pressures facing UK SMEs.

Late payments cost small businesses an average of £22,000 per year, leading to 50,000 business closures annually. In response, in late 2024 the government introduced the New Fair Payment Code, a set of measures aimed at tackling late payments and improving financial stability for SMEs.

Allstar’s research, conducted with Censuswide, surveyed 500 UK SME owners and decision-makers, revealing that 54% identify cash flow as a significant issue, and up to 70% believe financial admin burdens are hindering business growth. Many SMEs struggle with inefficiencies, with over half spending up to six hours managing expenses and cash flow. Given these daily challenges, business owners are increasingly looking for solutions that streamline processes and reduce friction.

Faster invoice payments could be a game-changer, with 28% of SMEs stating it would save them valuable time, while 27% believe it would alleviate administrative and cash flow concerns. Paul Holland, Managing Director for UK/ANZ Fleet at Corpay, which includes the Allstar brand, commented:

 “Business owners can take proactive steps to simplify their operations and improve efficiencies, reducing the burden of financial admin, helping to streamline payment and expense management - ultimately allowing SMEs to focus on their core business and long-term goals.

With a challenging landscape continuing, SMEs need to position themselves for growth, driving both their own success and that of the wider economy. At Controlaccount, we assist over 500 small, medium and large private businesses, providing them with credit management and debt recovery solutions. Are you an SME in need of a helping hand with ethical, swift recovery of your outstanding invoices? Speak to us today.

Source www.ukdcnews.co.uk