Small businesses are the driving force of Britain’s economy and unfortunately, there is a late payment culture which unfavourably affects too many small businesses.
The late payment culture includes late or unfair payment practices in the private sector. If small businesses were paid on time, it could mean a large increase in the nation’s economy by around £2.5 billion annually.
The key facts about this unfair practice mean that 1 in 5 businesses have run into cashflow issues due to late payments from other businesses. The estimated value of each late payment affecting businesses is just over £6000 and statistically, a third of payments to small businesses are late.
Fortunately, we have the Small Business Commissioner which is an independent public body covering all of the UK and is setup by the government to tackle late and unfavourable practices to businesses. The SBC is available, and urges affected businesses to use their services and take action.
Why should businesses help break the late payment cycle?
There are many new technologies that can help make instant payments and can enable businesses pay suppliers quicker, help increase work efficiency and save operational costs. Many companies have agreed to make faster payments in 30 days or less as an industry standard which includes both customers, investors and business owners.
SMEs have shown unthinkable strength during the pandemic, and many have played a vital role to keep their local communities going forward and providing vital services. AIMS have been able to support those businesses through difficult times, and now looking at the post-pandemic boom, we continue to support and save valuable time for them. Get in touch with us today.