Are you an SME affected by late payments?
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 identeco, our innovative Business Support Toolkit provides unlimited searches on over 5 million UK companies and businesses - providing accurate and informed insights to enable you to make smarter business decisions. Helping you to grow your business, avoid risk and understand your customers. Speak to us today.
Source www.ukdcnews.co.uk
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