Cash flow and late payments are the biggest financial concern for over a fifth of small business owners in the UK this year as one in four state they are constantly chasing late payment, according to a new report.
The annual 2022 business challenges report carried out by card payments specialist takepayments Limited, surveyed SME business owners and decision-makers across the UK to discover the current small business landscape for the year ahead.
Late payments ultimately lead to a worrying impact on small businesses cash flow according to one in four SME’s surveyed, so it’s no surprise it’s a top concern for small business owners that are already faced with the financial challenges of the ongoing cost of living crisis.
SME’s within the IT and leisure, sport and tourism sector are the businesses that are most concerned when it comes to the impact late payments has on their cashflow.
The Brexit aftermath continues to be felt amongst small businesses, even over a year on as more than a quarter expressed their concern on how it will affect their cashflow this year. The report also uncovered widespread concern on lack of knowledge on invoicing and tax, as one in four small business owners state this as their biggest financial challenge for the year ahead.
This comes as almost a third of small business owners and senior leaders state they have limited knowledge on invoicing and over a fifth state they are self-taught when it comes to taxes and invoicing. Overall, one in ten (9%) businesses say financial challenges will be their biggest concern for the year ahead, a 6% decrease from last year. This comes as February 2022 sees the end of all remaining COVID restrictions in the UK.
Sandra Rowley at takepayments limited said: “The past few years have been difficult for business owners across the country. Faced with a mix of Brexit, COVID restrictions and lockdowns, staff and supply issues and now the cost of living crisis, it’s astonishing to see that one in four small businesses state they are constantly chasing late payments.
Not only do late payments have a worrying financial impact on small businesses, but it is also time-consuming. A steady cashflow is imperative to small businesses who are already feeling the pinch, to ensure they can pay their bills, continue providing their service and ultimately survive these financially pressing times.”
