Talking on a recent podcast, the Small Business Commissioner, Liz Barclay, has warned that the UK’s SMEs are being put at risk because of late payments.
Speaking to Anthony Persse, Saltare CEO, Liz said that without confidence in their cashflow, small firms could be restricted from investing in new jobs, equipment and training, as well as a risk of closing down.
She said: “If we look economically, small businesses are put at risk and can’t manage their cash flow if they don’t have payment certainty or know when payments will be made. This means they either have to stretch their funds or look elsewhere for funding, and this limits their investments not just in business growth but business-as-usual functions.”
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Email JaimeLiz also mentioned the fact that business owners could face mental health challenges caused by late payments, with many suffering sleepless nights due to an unpaid invoice putting their livelihood at risk.
Reflecting on their conversation, Anthony Persse, said, “Chatting to Liz really brings home how important it is for business leaders and policymakers in the UK to prioritise paying on time. Early payment and the certainty of payment ease cash flow concerns and improves the likelihood of future success and growth. Conversely, poor cash flow and poor payment practices ultimately leads to business failure and insolvency.”
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