5 News. Late payments are the biggest cause of cash flow stagnation for UK SMEs, according to Allstar insights • Late payments are the primary culprit for causing cash flow problems say 41% of businesses, Allstar research finds • Findings also reveal UK SMEs are spending up to seven hours every week managing costs and their cash flow • Late payments cost small businesses £22,000 a year on average according to the government Late invoices are the primary culprit for causing cash flow problems for businesses according to two fifths (41%) of UK small and medium-sized enterprises (SMEs) while making sure the bills are paid was an issue for a third (32%) and having access to emergency cash (21%) was also top of the list. That’s according to Allstar, one of the UK’s leading business, EV and fuel expense payment companies, which today launches its latest insights into the issues plaguing the nations small businesses. Late payments are costing small businesses £22,000 a year on average, with the government announcing the New Fair Payment Code. This will include new measures and a consultation to combat the issue, which leads to 50,000 business closures a year. The research, which surveyed 500 SME business owners and decision makers, completed with Censuswide, found that over half (54%) cite cash flow an issue and up to 70% say that the burden of cashflow and admin has significantly hampered business growth. Cash flows are being impacted predominantly by inefficiencies, and just over half say they spend up to 6hrs managing costs and their cashflow. Burdened with a daily onslaught of challenges including cash flow management, SME owners are on the lookout for little wins that make their lives easier by removing points of friction and simplification. More than a quarter (28%) said that faster payment of invoices is the key to helping their business save time, and 27% say it would solve admin and cash flow problems. Businesses are able to drive down their cash flow headaches by harnessing the latest tools and products that could give customers up to 44 days interest free credit on all business purchases*, like Allstar’s all-in-one solution. Allstar Plus could help to make business payments and expenses easier to manage, as one relationship creates ‘less work’. Paul Holland, Managing Director for UK/ANZ Fleet at Corpay, including UK brand, Allstar, said: “It’s a tough climate for the UK’s SMEs; our insights show that one of the biggest issues that are impacting cash flow are late payments, something that kills 50,000 businesses in the UK every year according to the government. “That’s why business owners and proprietors are increasingly looking for ways to simplify their operations and improve efficiencies, making these arduous tasks less work. An all-in-one solution achieves this by enabling more simplicity and easier management.” “In doing so, SMEs can re-focus their attention to those big-ticket items that require their expertise and attention and will ultimately mean the business can focus on its own success and that of the economy. This way we all thrive.” To find out more about Allstar and its business payments solution, its Allstar Plus card visit: https://allstarcard.co.uk/solutions/businesspayments/allstar-plus or contact our expert team at: 0345 266 5101.
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