Late Payments Stifle Small Businesses, StonePay Offers Solution

Late Payments Stifle Small Businesses, StonePay Offers Solution

Recent findings from the Federation of Small Businesses (FSB) have shed light on a significant pain point for UK's small businesses: late payments. The report titled, "Time is Money: The Case for Late Payment Reform," underscores the magnitude of this challenge with key insights:

  • 52% of small businesses grappled with late payments in 2022.

  • 25% noted a surge in late payments the same year.

  • Sectors hardest hit encompass construction, education, administrative, professional, scientific, transportation, IT, arts, and human health and social work.

  • Geographically, small businesses in south-east and east of England, alongside Northern Ireland, reported a higher propensity of late payments.

The repercussions of late payments aren't just momentary glitches; they resonate deeper:

  • Mounting financial stress.

  • Complications in accessing credit.

  • Dwindling cash flow.

  • Procrastination in pivotal investments, stunting growth.

  • A heightened brink of insolvency.

The FSB advocates robust government intervention, with propositions like:

  • Legislated maximum payment tenure of 30 days specifically for small businesses.

  • Universal enforcement of the Prompt Payment Code.

  • Augmenting the jurisdiction of the Small Business Commissioner to probe and penalize tardy payers.

In this landscape, StonePay emerges as a beacon of hope. A state-of-the-art platform, StonePay pioneers a behavioral scoring system to gauge business trustworthiness, thus granting small businesses a vanguard against potential late payments.

StonePay isn't just another platform for the small business fraternity; it's the antidote they've been yearning for. An effortless yet potent arsenal against late payments and a catalyst for healthier cash flows. If the late payments conundrum has been hindering your business progression, StonePay beckons.