Small Business Britain is dedicated to getting paid for the goods and services it provides
- We will invoice our customers at the right time and in the way that makes it easiest for them to pay promptly
- Set clear and easy to understand payment terms at the early on
- Give our customers the chance to pay online, in person or through traditional ‘paper’ methods
Context
Most small businesses have experienced difficulty with timely customer payments. The Federation of Small Businesses released figures earlier this month showing that as many as 34% of private sector companies were paying their bills late. Getting the payment process right is essential for any small business. Put simply, if you don’t get paid, you won’t be in business for long.
Part of getting paid is making it easier for your customers or clients to give you their money. The future of payments is changing, and small businesses need to be ready. The most obvious example of this was the announcement in late 2009 that cheques in the UK would be utterly phased out by 2018. This, combined with the fact that the use of cash is on the decline, means that small businesses, regardless of whether they are retailers or not, will need to embrace the use of electronic payments.
Evidence of support
When asked how they avoided late payments from customers or businesses they supply to, two approaches gained the lion’s share of support:
- 48% pointed to setting up clear payment terms at an early stage
- 37% stated that utilising electronic payments was an important requirement
- In a separate question, 33% of respondents stated that it was important for a business to link invoicing into payment cycles to manage cashflow
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