Late payments up more than £10bn in a year
15% of British freelancers spend 4 hours and above a week chasing invoices
CEO of ETZ Payments, Nick Woodward, provides commentary on how late and inconsistent payments are hurting businesses and freelancers alike
Today, new research showed that Small and medium-sized companies are waiting to receive £23.4billion, up from £13billion in 2018. More than half of businesses are chasing money owed, with the bill for trying to collect it hitting £4.4billion, says retail payment authority Pay UK. This comes as ETZ Payments reveals startling national representative research that shows that nearly a sixth of freelance and contract workers spend over 10% of their working week chasing invoices and payments. The new research from PayUK showed that the average amount owed to each firm had risen from £17,000 last year to £25,000 today. This demonstrates that across the board, self-employed contractors, freelancers, and small businesses are under strain. As we near the general election and with almost guaranteed further Brexit uncertainty, SMEs and workers are going through one of the most turbulent periods of their existence.
Nick Woodward, CEO of ETZ Payments, a back-office solution provider for the recruitment sector, offers the following commentary:
“This year and next year will undoubtedly be a turbulent period for small businesses and workers alike with myriad political and economic issues and an increasing amount of late payments. This issue is seriously harming cash flow, investment and growth across the UK economy. There are over 2 million freelancers and 5.7 million SMEs today, and with financial constraints such as chasing invoices, this will harm productivity and profit, and more needs to be done by the next government to ensure that these entrepreneurs, business owners, managers and workers, are paid justly and on time to keep the economy moving.”