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.
Time is Money: The Case for Late Payment Reform: https://www.fsb.org.uk/resources-page/time-is-money-late-payments-stifle-small-businesses-report-shows.html
Plagued by the late payment menace? Enlist for the StonePay beta program now, and embark on a journey towards seamless cash flow management.
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