Can you guess how much money the UK’s small businesses are owed in unpaid invoices? It’s not thousands of pounds. It’s not even millions. In fact, the UK’s small businesses are owed a shocking estimated half a trillion pounds overall in unpaid invoices, according to
the State of Late Payment 2016 report from MarketInvoice.
Drilling down further, the average UK small business is owed £36,186 in unpaid invoices, according to data from Bacs, the system responsible for bank-to-bank payments in the UK. The Bacs data also shows that 60% of SMEs have faced issues with chasing overdue payments.
Is your business one of them?
£36,186 isn’t pocket change. Think what you could do with that sum of money!
And it’s not only the impact on your cash flow that causes problems. You can also waste a ton of time and energy following up with late paying customers. Chasing payments is rife with awkward conversations and uncomfortable emails - leading to uncertainty and stress.
When you consider what you and your team could achieve with that precious time, the impact of late payments looks even more serious. What’s more, the resulting financial instability stops you from making nimble business decisions. You can’t decide to invest in that new piece of software, or hire that fabulous new web developer, because you’re always waiting to get paid and you’re never quite sure when it’s going to happen. That means fewer opportunities to spend time and money on growing your business in new and exciting directions.